Thailand’s Digital Wallet Handout Programme

BANGKOK (Reuters) – Thailand will distribute 145 billion baht ($4.2 billion) of its “digital wallet” handout programme earlier than scheduled to support vulnerable groups, a deputy finance minister said on Monday, stressing the need for short-term economic stimulus.

In remarks during a budget debate in the Senate, Julapun Amornvivat said the government has prepared 450 billion baht ($13.29 billion) in total for its signature handout programme, which seeks to stimulate economic activity by transferring 10,000 baht to 50 million Thais to spend in their localities.

The measure, which was scheduled for rollout in the last quarter of this year, is the cornerstone of Thailand’s plans to jumpstart Southeast Asia’s second-largest economy, which grew 2.3% in the second quarter.

A change in government last month, caused by a court’s removal of Srettha Thavisin as premier, has left uncertainty about when promised stimulus measures would commence.

Part of the handout will now be in cash, according to Srettha’s ally and successor, Paetongtarn Shinawatra.

Finance official Julapun mentioned that 32 million people had registered for the programme, including vulnerable groups, but not those without smartphones, through which funds are due to be received via an application.

It remains unclear if the first payments, which Julapun indicated would be made later in September and sourced from the 2024 budget, will be in cash.

His remarks follow Paetongtarn’s commitment to stimulate the economy immediately and uphold Srettha’s policy agenda, with her government publishing a policy statement to be delivered to parliament this week.

The handout scheme has faced criticism from economists, including two former central bank governors, as fiscally irresponsible. However, the government insists the policy is necessary to invigorate an economy expected to grow just 2.6% this year, up from 1.9% in 2023, and lagging behind most regional peers.

($1 = 33.86 baht)