Thai government denies plans to slash digital wallet initiative budget, aimed at boosting economy

The Thai government has refuted rumours of cutting funds for the digital wallet initiative from 560 billion baht (US$ 15,426,997,600) to 400 billion baht (US$ 11,019,284,000), stating that the project is not just for the underprivileged but aimed at stimulating the economy more broadly. The government is keen on weeding out the wealthy from benefiting from the scheme, which is expected to cost less than the initially projected 560 billion baht as not all beneficiaries will claim their entitlements.

Finance Minister, Junlapun Amornwiwat, who also chairs the committee overseeing the 10,000 baht digital wallet project, clarified that the government has not decided on any reductions or changes to the scheme. He pointed out that the initiative is not intended only for the needy, but rather to stimulate the economy by reaching out to a broader demographic, reported KhaoSod.

“The issue of reducing the funds to 400 billion baht, I never mentioned. Where did these numbers come from? This policy is an economic stimulus, not a welfare policy. It’s not for the indigent but for stimulating the economy to reach more broadly. We are ready to listen to dissenting voices and suggestions, such as whether this measure can truly stimulate the economy, as it may just replace regular spending with digital money. We must consider this issue,” stated Junlapun.

He mentioned that if there’s a need to decide who should benefit, there should be a scientifically-based mechanism to determine who is wealthy and who is not. This could be based on tax returns, bank account balances, or land ownership. The minister also confirmed that the eligibility process for the digital wallet does not involve registration but requires identity verification in line with Bank of Thailand regulations.

“Using an ID card to confirm eligibility and having a personal deposit account linked are required. The identity verification process must be completed before downloading the digital wallet application. The working group will work out the details,” added Junlapun.

The finance minister also stressed that the government is open to suggestions and will operate within the appropriate framework without negatively impacting the overall economy. From current data, it appears that out of 56 million people aged 16 and above, about 54.8 million are eligible for the initiative.

However, the minister pointed out that not all those who are eligible will claim their benefits. The government is ready to listen to suggestions, follow International Monetary Fund (IMF) guidelines, and consider the views of academics who question the appropriateness of the project. The government will strictly adhere to fiscal discipline.

“If we say the economy is doing well, today there would be no Prime Minister named Srettha Thavisin. The people would not have chosen him to come and solve the problems. There are only a few ways to make the economy grow, one of which is to stimulate private sector consumption,” the finance minister concluded.

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