Prime Minister Srettha Thavisin has reiterated his confidence in the government’s 500-billion-baht digital wallet handout scheme, addressing concerns that it will require a massive budget and lead to increased reliance on government handouts. The prime minister emphasized that the policy is a one-time initiative aimed at injecting funds into the pockets of citizens, with different terms and conditions compared to previous handout schemes.
Under the digital wallet scheme, recipients are required to spend the money locally in order to stimulate the sluggish provincial economy. Prime Minister Thavisin stated that this approach would help kick-start economic activities in the first or second quarter of next year, while the tourism promotion policy remains a core strategy for boosting economic growth in the coming months.
Ensuring transparency and timely implementation, the prime minister assured that the handout scheme will not face any further delays. However, critics have raised concerns about the government’s plan to borrow money from the Bank for Agriculture and Agricultural Cooperatives (BAAC).
To finance the digital wallet scheme, three funding sources will be utilized: 152.7 billion baht from the 2025 fiscal year budget, 175 billion baht reallocated from the current fiscal year’s budget, and another 172.3 billion baht borrowed from the BAAC to support 17.23 million farmers.
Economist Anusorn Thamjai emphasized cautionary measures that the government should take in regard to borrowing from the BAAC. He suggested allocating 40-50 billion baht per year for repayment and compensation to prevent potential financial issues affecting the bank.
While the borrowed amount is initially classified as “off-budget” and not counted as immediate public debt, there is a possibility that it could become public debt in the future if sufficient revenue cannot be generated to cover it. However, if the government follows the cautionary measures and implements risk management and good governance, the scheme can achieve its objectives without increasing fiscal risks in the long term.
The digital wallet handout scheme introduced by the Thai government has raised several concerns regarding its budget and the potential dependence on government handouts. However, Prime Minister Srettha Thavisin has expressed confidence in the scheme, highlighting that it is a one-time initiative aimed at injecting funds into the pockets of citizens.
One of the main objectives of the scheme is to stimulate the provincial economy by requiring recipients to spend the money locally. This approach is expected to kick-start economic activities in the first or second quarter of next year. At the same time, the government’s tourism promotion policy remains a core strategy for boosting economic growth in the coming months.
To finance the scheme, the government plans to utilize three funding sources. This includes 152.7 billion baht from the 2025 fiscal year budget, 175 billion baht reallocated from the current fiscal year’s budget, and another 172.3 billion baht borrowed from the Bank for Agriculture and Agricultural Cooperatives (BAAC) to support 17.23 million farmers.
However, economist Anusorn Thamjai has raised concerns about the government’s plan to borrow money from the BAAC. He suggests that the government should allocate a portion of the budget for repayment and compensation to prevent potential financial issues facing the bank.
Initially, the borrowed amount is not classified as immediate public debt but as “off-budget.” However, there is a possibility that it could become public debt in the future if sufficient revenue cannot be generated to cover it. To mitigate this risk, it is crucial for the government to follow cautionary measures and implement risk management and good governance.
Overall, the success of the digital wallet scheme depends on effective implementation, transparency, and the government’s ability to manage potential financial risks. If done correctly, it has the potential to inject funds into the economy and stimulate economic growth without increasing fiscal risks in the long term.
For more information on the Thai economy and government initiatives, you can visit the main website of the Ministry of Finance Thailand: Ministry of Finance Thailand.
The source of the article is from the blog girabetim.com.br