Thailand’s Prime Minister Paetongtarn Shinawatra has revealed a big change to the government’s 450 billion baht (US$13.1 billion) “digital wallet” handout, indicating that some of the funds will now be distributed in cash. This is a deviation from the original idea, which was to send 10,000 baht in digital credits to 50 million residents for use in their communities.
The plan, a cornerstone of the ruling Pheu Thai Party’s election campaign, is now being finalised, with further information expected in a future parliamentary policy declaration.
The specific amount of the budget to be converted to cash is unknown, and attempts to gain more information from a deputy finance minister were fruitless. This development comes just two weeks after Paetongtarn, 38, took office as Thailand’s youngest prime minister, succeeding Srettha Thavisin, who was important in developing the digital wallet strategy.
The digital giveaway initiative is intended to improve Thailand’s economy, which expanded by only 2.3% in the second quarter of this year, underperforming other countries in the region. Despite criticism from academics and previous central bank governors for fiscal recklessness, the government insists on preserving fiscal discipline as the program is due to begin in the fourth quarter of the year.
