The government’s ambitious digital wallet handout scheme, aimed at stimulating the economy, is set to launch in full force during the fourth quarter, according to Prime Minister Srettha Thavisin. The flagship policy of the ruling Pheu Thai Party will distribute 10,000 baht to 50 million beneficiaries, empowering them to spend within their localities over the span of six months.
Prime Minister Srettha, who also serves as the finance minister, expressed confidence that the digital wallet scheme would have a significant impact on the country’s GDP, projecting growth of 1.2 to 1.6 percentage points. The need for such a stimulus measure arises as the economy experienced minimal growth in the first quarter and slowed down after a promising 1.7% annualized growth in the last three months of the previous year.
Highlighting the objectives of the scheme, Prime Minister Srettha emphasized that it aims to alleviate the financial burdens faced by citizens due to rising living costs, while simultaneously improving the quality of life for vulnerable groups and farmers. Additionally, the scheme intends to bolster local economies and promote self-reliance in communities, while also facilitating advancements in digital technologies and innovation.
Deputy Finance Minister Julapun Amornvivat shed light on the funding sources for the 500 billion baht project. A portion will be drawn from the 2025 fiscal year budget, while another portion will be borrowed from the Bank for Agriculture and Agricultural Cooperatives’ budget. The scheme will provide support to 17.23 million farmers. The remaining funds will be reallocated from the 2024 fiscal year budget.
Eligible individuals will have the opportunity to register for the handout in the third quarter and commence spending in the fourth quarter. To ensure compliance and prevent any improper actions, a subcommittee will be established under the Digital Wallet Policy Committee. The Finance Ministry will seek cabinet approval for the scheme in the coming weeks.
It is estimated that around 50 million people meet the eligibility criteria for the handout, which includes individuals aged 16 and above with a monthly income of less than 70,000 baht and bank account savings below 500,000 baht. The funds can only be used to purchase food and consumer goods within the recipient’s registered district. Online goods, tobacco and alcohol, cash vouchers, and valuable items are not eligible for purchase using the handout funds.
While the scheme has faced criticism from some economists and former central bank governors for potential fiscal irresponsibility, the government remains committed to ensuring that the project adheres to the Budget Act and the State Fiscal and Financial Disciplines Act.
The digital wallet handout scheme, announced by Thailand’s Prime Minister Srettha Thavisin, aims to stimulate the country’s economy by distributing 10,000 baht to 50 million beneficiaries. The scheme is set to launch in the fourth quarter and will run for six months. The government expects the scheme to have a significant impact on the country’s GDP, projecting a growth of 1.2 to 1.6 percentage points.
The main objectives of the scheme are to alleviate citizens’ financial burdens caused by rising living costs, improve the quality of life for vulnerable groups and farmers, and boost local economies. It also aims to promote self-reliance in communities and facilitate advancements in digital technologies and innovation.
The funding sources for the 500 billion baht project include a portion drawn from the 2025 fiscal year budget and a portion borrowed from the Bank for Agriculture and Agricultural Cooperatives’ budget. The scheme will provide support to 17.23 million farmers, while the remaining funds will be reallocated from the 2024 fiscal year budget.
To ensure compliance and prevent any improper actions, a subcommittee will be established under the Digital Wallet Policy Committee. Eligible individuals will have the opportunity to register for the handout in the third quarter and can start spending in the fourth quarter. The Finance Ministry will seek cabinet approval for the scheme soon.
Around 50 million people in Thailand meet the eligibility criteria for the handout, which includes individuals aged 16 and above with a monthly income of less than 70,000 baht and bank account savings below 500,000 baht. The funds can only be used to purchase food and consumer goods within the recipient’s registered district. Online goods, tobacco and alcohol, cash vouchers, and valuable items are not eligible for purchase using the handout funds.
While the scheme has faced criticism from some economists and former central bank governors for potential fiscal irresponsibility, the government assures that the project will adhere to the Budget Act and the State Fiscal and Financial Disciplines Act.
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