Thai government explores funding for digital wallet giveaway

The Thai government is currently exploring funding avenues for its digital wallet giveaway initiative, with final decisions on the funding source set to be determined next month. Lawaron Saengsanit, the permanent secretary for the Finance Ministry, revealed that the ministry and the Budget Bureau have been assigned by the digital wallet policy committee to assess possible funding sources for the scheme. The committee’s meeting presided over by Prime Minister Srettha Thavisin, took place yesterday, March 27.

Three probable funding sources have been proposed: a borrowing bill, the national budget, or a combination of loans and the budget. As the government is in the process of preparing the national budget for fiscal year 2025, adjustments could be made to this budget to finance the initiative. The Finance Ministry may also consult with the Budget Bureau about using the 2024 budget to fund the scheme, said Lawaron.

“The details should be made clearer on April 10. The prime minister also wants the project’s details to go before the Cabinet by the end of next month.”

Prime Minister Srettha Thavisin, who also holds the Finance Minister position, highlighted the dire state of the economy and the need for stimulation. The digital wallet scheme is seen as a short-term measure to inject cash into the economy, to improve people’s livelihoods. The prime minister emphasised the urgency of its implementation.

Deputy Finance Minister Julapun Amornvivat previously mentioned that the government plans to launch its flagship digital wallet giveaway scheme in the final quarter of this year. The timeline for the scheme is expected to be clearer following the digital wallet policy committee’s meeting on April 10.

The proposed 500-billion-baht (US$ 14 billion) scheme is tentatively slated to be rolled out in May. However, widespread anticipation of a delay exists due to legal questions surrounding the scheme. The National Anti-Corruption Commission (NACC) has also cautioned the government about potential pitfalls associated with the scheme, ranging from graft to legal risks, reported Bangkok Post.

The digital cash giveaway scheme is the flagship policy of the Pheu Thai-led government and is designed to stimulate the economy.

Eligibility for the 10,000-baht (US$280) handout under the scheme is for Thais aged 16 and older who earn less than 70,000 baht (US$2,000) a month and have less than 500,000 baht (US$14,000) in their bank accounts. An estimated 50 million people are expected to be eligible for the handout.