The Thai Cabinet has postponed its detailed review of the 10,000-baht digital wallet scheme, but the timeline for the handout remains unaffected. Deputy Finance Minister Paopoom Rojanasakul assured that the delay in the review process will not impact the scheduled rollout of the handout. The scheme, aimed at boosting the economy, will allow eligible citizens to register from August 1 to September 15, with the funds becoming available in the fourth quarter of this year.
Government’s Assurance on Timeline
Deputy Finance Minister Paopoom Rojanasakul emphasized that the delay in the Cabinet’s review will not alter the timeline for the 10,000-baht handout. He explained that the postponement was due to the lack of feedback from several relevant agencies. Despite this, the registration process for the scheme will proceed as planned, and the digital wallet will be accessible to beneficiaries by the fourth quarter.
The development of the payment system for the digital wallet is on track, according to Paopoom. The Digital Government Agency is currently working on the system, which will be reviewed by the Bank of Thailand. This review is necessary as the system is linked to commercial banks’ payment infrastructure. Paopoom reassured that the delay in the review process does not affect the overall timeline for the handout.
Paopoom also mentioned that stores participating in the scheme can seek reimbursements from commercial banks. This ensures that the handout will be smoothly integrated into the existing financial system, providing a seamless experience for both beneficiaries and retailers.
Economic Impact and Objectives
The 10,000-baht digital wallet scheme is a key policy initiative of the Pheu Thai Party, aimed at stimulating economic growth. The handout is expected to inject significant funds into the economy, targeting adults earning no more than 70,000 baht per month and with less than 500,000 baht in their bank accounts. The scheme is designed to spread the cash evenly across the economy, with beneficiaries required to spend the money within six months in their local areas.
The government is optimistic about the potential economic impact of the handout. Officials believe that the scheme could boost economic growth by up to 1.8 percentage points. This is particularly important as Thailand has experienced a decade of sub-2% growth. The handout is part of a broader strategy to achieve a growth target of 5% for Southeast Asia’s second-largest economy.
In addition to the digital wallet scheme, the government has introduced other stimulus measures, including incentives for the property sector and increased government spending. These initiatives are aimed at creating a more robust and resilient economy, capable of sustaining long-term growth.
Challenges and Criticisms
Despite the government’s optimism, the 10,000-baht handout scheme has faced criticism from various quarters. Economists and former central bank governors have raised concerns about the fiscal responsibility of the scheme. They argue that the handout could lead to increased public debt and inflationary pressures, potentially undermining the long-term stability of the economy.
Critics have also questioned the effectiveness of the scheme in achieving its intended objectives. Some believe that the handout may not be sufficient to stimulate significant economic growth, given the structural challenges facing the Thai economy. These challenges include low productivity, an aging population, and a reliance on traditional industries.
The government has responded to these criticisms by emphasizing the need for immediate economic stimulus. Officials argue that the handout is a necessary measure to kickstart growth and address the economic challenges facing the country. They also highlight the safeguards in place to ensure that the funds are used effectively and responsibly.
Despite the criticisms, the government remains committed to the 10,000-baht handout scheme. The Cabinet’s decision to delay the review process is seen as a minor setback, with officials confident that the scheme will be implemented as planned.
