Thailand issues digital money to 50 million people as social benefit

Thailand is rolling out a massive digital cash handout plan to jumpstart its lagging economy. From August 1, eligible businesses and individuals can start registering for the ‘Digital Wallet’ program, which plans to give 10,000 baht (around $275) to 50 million citizens. 

The Digital Wallet plan was a key campaign promise of Prime Minister Srettha Thavisin’s Pheu Thai party. The government believes this initiative will create an “economic tornado,” with a predicted increase in the gross domestic product (GDP) by 1.2 to 1.6 percentage points. 

But not everyone is convinced. Critics argue that this kind of stimulus is a short-term fix and won’t lead to long-term economic growth. Funding this massive program hasn’t been straightforward. 

Initially, the government planned to use funds from the state Bank for Agriculture and Agricultural Cooperatives. But financial experts raised red flags, forcing a change in plans. 

Now, the project will be funded through the 2024 and 2025 fiscal budgets. Deputy Minister of Finance Julapan Amornvivat said the cost had dropped from 500 billion baht ($13.8 billion) to 450 billion baht ($12.4 billion), making the budgetary funding possible.

Julapan also mentioned that not everyone would benefit from the handouts. Tens of thousands of shop owners and individuals with a history of fraud in past programs will be excluded. 

Also, certain things like oil, services, and online purchases, may not be eligible for the digital money, although the final list will be announced soon. Srettha said that:

“The digital wallet is a big government project to add money to the pockets of people, small businesses, and the economy. For the sake of legal and technical prudence, and security of users, implementing the project takes time. But this wait is definitely not in vain.”

Thailand has been grappling with a sluggish economy for years. The World Bank’s Thailand Economic Monitor projected GDP growth of just 2.4% for 2024. The Digital Wallet program reportedly wants to provide a much-needed boost, but its success remains to be seen.