Thai government defends 10,000-baht digital wallet scheme amid economic criticism

Economic experts’ criticism of the 10,000-baht digital wallet scheme was rebuffed yesterday by its supporters, who asserted that the cash handout would alleviate disparity and provide a crucial financial boost to the disadvantaged.

Jutipong Phummul headed the faction, which handed a plea to the government, encouraging the implementation of the digital wallet initiative. Presented in Parliament as an economic strategy to rejuvenate the economy, the appeal was received by Somkid Chukong, the deputy secretary-general for political affairs to the prime minister.

The submission followed an open letter signed by over 120 scholars, researchers, economic experts and even former Bank of Thailand governors.

The collective urged the Pheu Thai Party-led government to re-evaluate the one-off handout scheme.

Their concerns revolved around the hefty handout, which would necessitate a 560 billion baht (US$15.4 billion) budget and encompass approximately 56 million individuals aged 16 and above, potentially triggering inflation and damaging fiscal discipline. This could destabilise the economy.

Jutipong’s group countered the critics, accusing them of bias against the “pro-democracy” government and indifference towards the disadvantaged.

The group suggested that the government should consider legal measures against those causing panic by encouraging withdrawals from specific banks. These rumours indicated that the government might solicit loans from these banks to finance the scheme.

Somkid yesterday reassured the group that the government would carry out the policy. He remained noncommittal when questioned about potential resistance due to its origins with the Pheu Thai Party.

Responding to reports of the National Anti-Corruption Commission (NACC) scrutinising the scheme for possible policy corruption, he stated that the NACC had determined it did not violate election law.

When questioned about the proposal that the scheme should focus on vulnerable groups and low-income individuals, he advocated for the cash handout to be distributed to everyone over the age of 16, regardless of their financial standing.

Elaborating on the complexity of differentiating between the rich and the poverty, he explained that those who do not wish to use the money can opt not to spend it. The funds would then be returned to the state at the scheme’s conclusion.

Julapun Amornvivat, the Deputy Finance Minister, noted on Tuesday that the Digital Wallet Steering committee might contemplate revising the scheme to potentially exclude the wealthy, reported Bangkok Post.

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