Thailand to 'boost' its economy with $13.8 billion digital money handout

This initiative, known as the "Digital Wallet" programme was announced in April and aims to strengthen the country's lagging economy by distributing digital cash to its citizens.

The plan involves giving 10,000 baht (approximately $275) in digital money to 50 million eligible citizens. This digital cash can be spent at local businesses, stimulating domestic consumption and economic activity.

Registration for the programme will begin on August 1, 2024, with both businesses and individuals eligible to participate, Prime Minister Srettha Thavisin posted on X.

"The Digital wallet registration opens on August 1. At today's meeting, we considered preparation for opening registration and overall operations. The relevant agencies have been assigned to take action," Srettha wrote on Monday, July 15.

To qualify for the 10,000-baht digital handout, recipients must meet the following criteria: they should be at least 16 years old by September 30, have no more than 500,000 baht ($13,879) in their bank accounts, and their 2023 earnings should not exceed 840,000 baht ($23,320) according to their tax filings.

Additionally, the government has implemented measures to prevent fraud. Tens of thousands of shop owners and cash recipients with a history of fraudulent activities in previous programmes will be excluded from the Digital Wallet initiative.

The Thai government anticipates that the Digital Wallet programme will create an "economic tornado," boosting the country's gross domestic product (GDP) growth by 1.2 to 1.6 percentage points.

"The digital wallet project is a big government project that will add money to the pockets of citizens, entrepreneurs, and the economy as a whole," Thavisin added.

Despite its potential benefits, the Digital Wallet programme has faced criticism from economists and financial experts. Critics argue that the handout may not contribute to sustainable economic growth and could lead to inflationary pressures.

Additionally, the programme's financing has been a contentious issue, with initial plans to fund it through the state Bank for Agriculture and Agricultural Cooperatives being revised due to expert warnings. The funding will now come from the 2024 and 2025 fiscal budgets.

The Digital Wallet programme was a major campaign promise of the ruling Pheu Thai party, led by Prime Minister Srettha Thavisin.