Thailand excludes groups from digital wallet project

The Government of Thailand decided to exclude two specific groups from participating in the 10,000-baht digital wallet project. This announcement comes as they prepare to release the registration timeline for the project tomorrow.

The Deputy Minister of Finance, Chulaphan Amornvivat, disclosed the decision following a meeting at the Government House. The meeting also addressed the sources of funding for the digital wallet initiative, emphasising concerns raised by audit agencies about the project’s financial framework. Despite the changes, the project will still aim to benefit 50 million people.

However, based on historical data showing that no state project has ever achieved over 90% registration, the budget has been adjusted to adequately cover 45 million participants, equating to 450 billion baht, said Chulphan.

“If fewer or more people register, we have mechanisms to manage the budget to ensure every baht is allocated effectively to the 10,000-baht digital wallet initiative.”

He added that the Ministry of Finance, in collaboration with the Budget Bureau, reviewed the figures and sources for the new funding framework, which will not rely on Article 28. Instead, it will utilise the budgets for the years 2024 and 2025.

For the fiscal year 2024, an additional budget of 122 billion baht will be proposed to the House of Representatives tomorrow, coupled with 43 billion baht from financial and budget management. The 2025 budget will include 152 billion baht along with another 132 billion baht dedicated to financial management.

Budget management

When asked about the necessity of a mid-year budget act for the 132 billion baht allocated for 2025, Chulphan assured that the current budget management framework would suffice without the need for additional legislation. He highlighted that various budget management tools are available to ensure the efficient use of funds.

Regarding the timeline, Chulphan mentioned that the registration dates for the digital wallet would be confirmed tomorrow. The committee has been tasked with setting the specific start and end dates for registration. We are confident that the system’s progress is satisfactory, and we remain on track for implementation in the fourth quarter, he said.

The Bank of Thailand’s views on the system’s security were also addressed. The Bank of Thailand emphasised the need for a secure and stable system. While no additional comments were made, the bank will be involved in ensuring the system meets the highest security standards as stated by Chulphan.

Questions about outsourcing the platform’s development were clarified by Chulphan, who noted that the Digital Government Development Agency has been working on the architecture and requirements for a long time, and the responsibility would eventually be passed to the outsourcing team.

When asked about earlier statements that the project would drive economic growth, Chulphan reiterated that the initiative aligns with legal frameworks and budgetary provisions. He stressed that efficient money circulation driven by public spending would catalyse economic activity without delays.

There were discussions about the negative list of goods and services for the project. The Ministry of Commerce has been given the flexibility to modify this list as necessary, although changes must be approved by a subcommittee. For instance, items like firearms, which we haven’t discussed yet, might need consideration. The Ministry of Commerce will review and propose any necessary adjustments, Chulphan elaborated.

State project

Additionally, individuals or businesses previously violating state project conditions or involved in litigation for reimbursement will be excluded from the project. We cannot risk giving them another opportunity to misuse the privileges, Chulphan explained.

The next steps include presenting the plan to the Cabinet next week, with a major announcement scheduled for tomorrow. Details regarding merchant registration will also be released, ensuring no confusion on the registration process.

In response to speculations about Krungthai Bank’s involvement in developing the application, Chulphan stated, I can’t confirm that. There have been many rumours, but the application released earlier is merely a government interface for identity verification and eligibility checks, not the settlement system.

The Thai prime minister hinted at the registration opening on August 1, promising that citizens would not be left waiting. Detailed guidelines on what can be purchased with the digital wallet and the project’s eligibility criteria will be disclosed soon, with ongoing discussions ensuring that the initiative remains within legal boundaries, reported Khaosod.