Thailand to implement controversial $13.8bn digital money bill, give money to citizens for local businesses

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Digital Wallet, meant to give 10,000 baht (about $275) to 50 million citizens in digital money to spend at local businesses.Prime Minister Srettha Thavisin posted on the social platform X, saying the registration will begin Aug. 1 and that he has given instructions to ensure the smooth implementation of the program.

The “Digital Wallet" was a major campaign promise of the ruling Srettha’s Pheu Thai party ahead of last year’s general election. The government says that this scheme will cause an “economic tornado," and Srettha has said the stimulus and subsequent consumption are expected to boost gross domestic product growth by 1.2 to 1.6 percentage points.However, economists have criticized the program, calling it an ineffective way to contribute to sustainable economic growth compared to other measures.In addition, its financing has faced several hurdles, delaying its planned implementation.

At first, the government said the state Bank for Agriculture and Agricultural Cooperatives would cover some of the funding needed. However, after warnings by financial experts, it was announced that the project's funding would come out of the 2024 and 2025 fiscal budgets.Deputy Minister of Finance Julapan Amornvivat said at a news conference on Monday the budgetary funding became possible after the plan's estimated cost dropped from 500 billion baht ($13.8 billion) to 450 billion baht ($12.4 billion), asserting that all estimated 50 million people will still be part of the program as only up to 90% of those eligible utilized them in previous handouts.Julapan added that the Digital Wallet committee has agreed to exclude tens of thousands of shopowners and cash recipients who have a record of committing fraud in past programs.The plan