Thai government’s 500 billion baht digital wallet under scrutiny

[snoop1130]

 

The funding sources for the government’s flagship 500 billion baht handout scheme, better known as the digital wallet, will undergo careful consideration, ensuring that public debt remains manageable, a senior government official stated today.

 

This scheme is a crucial campaign pledge of the ruling Pheu Thai Party, intending to distribute 10,000 baht to 50 million Thai citizens to stimulate local spending. However, due to concerns over securing adequate funding, the implementation of this initiative has been delayed.

 

The execution of the giveaway is now expected to take place in the fourth quarter of this year, as the government explores various avenues to secure the necessary funding. This week, the Cabinet greenlit an increase in the deficit for the 2025 fiscal year budget by 152.7 billion baht to support this initiative.

 

Despite these developments, the plan has drawn criticism from experts who argue that it exhibits fiscal irresponsibility. They contend that economic recovery cannot be achieved solely through handouts but requires addressing the structural issues plaguing the economy.

 

Responding to concerns about the impact of the deficit and public debt on the country’s credit rating, Deputy Finance Minister Krisada Chinavicharana asserted that it was not a cause for concern.

 

“The country’s position is strong … public debt will not exceed 70%.”

 

The administration, led by Prime Minister Srettha Thavisin, has also been encouraging the Bank of Thailand to reduce interest rates to spur growth, stated finance ministry permanent secretary, Lavaron Sangsnit.

 

“Monetary and fiscal policy must work together.”

 

Lavaron further emphasised that the central bank ought to provide a clear rationale for maintaining high rates.

 

Despite government pressure, the central bank has maintained its key interest rate at 2.50% since February, marking the highest rate in over a decade. The decision was made in a split vote, and the next rate review is scheduled for April 10, reported Bangkok Post.

 

By Alex Morgan

Caption: Digital Wallet concept that controls usage with blockchain and smart contacts

 

Source: The Thaiger 2024-04-05

 

Get our Daily Newsletter - Click HERE to subscribe
 

[bob smith]

Let em do it!

 

when the economy does eventually crash and the Thai baht becomes worthless - I will be here to hoover up all the spoils.

 

All my money is now in us dollars and gold.

best of luck, srettha and co.

 

bob.

[JackGats]

The money hand-out might be self-correcting in that it will cause the Baht to plummet and the people who got the hand-out will find themselves owning a currency that is worth substantially less. They might lose, not win, purchasing power at the end of the day.

[Mike Lister]

6 minutes ago, JackGats said:

The money hand-out might be self-correcting in that it will cause the Baht to plummet and the people who got the hand-out will find themselves owning a currency that is worth substantially less. They might lose, not win, purchasing power at the end of the day.

That is very possible. Equally as likely, I think, is that the release of those funds into the economy causes prices to surge and price inflation follows. If that happens at the same time as the Baht devalues, watch out!

[hotchilli]

13 hours ago, snoop1130 said:

The funding sources for the government’s flagship 500 billion baht handout scheme, better known as the digital wallet, will undergo careful consideration, ensuring that public debt remains manageable, a senior government official stated today.

Still dragging it out.... the people want their 10 K

[The Alien]

54 minutes ago, hotchilli said:

Still dragging it out.... the people want their 10 K

Agreed. They will dragging this ‘promise’ until the next election date is fixed. 

[mikebell]

15 hours ago, snoop1130 said:

“Monetary and fiscal policy must work together.”

Tax the ex-pat pensioners.

[ozz1]

If this doesn't happen there will be some mighty upset people here in issan and there goes there votes in the next election typical politicians

 

 

[Mike Lister]

15 minutes ago, mikebell said:

Tax the ex-pat pensioners.

Unhelpful scaremongering

[hotchilli]

1 hour ago, The Alien said:

until the next election date is fixed.

Fixed being an appropriate word

[sandyf]

16 hours ago, snoop1130 said:

the plan has drawn criticism from experts who argue that it exhibits fiscal irresponsibility. They contend that economic recovery cannot be achieved solely through handouts but requires addressing the structural issues plaguing the economy.

Yet the UK government claim  that economic recovery is on course due to the handouts in recent years. Who is the greater expert and is the UK free from structural issues that need to be addressed. The condition of much of the infrastructure would suggest otherwise.

Thailand and the UK have similar size of population, UK national debt is currently 100% of GDP, Thailand national debt is 55% of GDP, well below the average for SE Asia.

At the end of the day all political initiatives attract critisism and the only thing that counts is international opinion on the currency, you only have to look at what happened following the Liz Truss initiative.

[bamnutsak]

Zombie Wallet.

 

It is dead but keeps on walking.

 

Slipped to "the fourth quarter", which in Thailand is New Year's Eve.

[Shoeless Joe]

2 hours ago, hotchilli said:

Still dragging it out.... the people want their 10 K

Huh. Some people we know have already borrowed against it and spent it.

Local loan sharks giving 8k in cash for the 10k "wallet" later.

[Cabradelmar]

Populist giveaway that THA can't afford to undertake, nor will it lead to any real meaningful lasting economic change.

[Purdey]

Pheu Thai lost the election as not enough people voted for them. Why are they going ahead with an election promise when they lost?

[PETERTHEEATER]

I already have a Digital Wallet. My wife's fingers are always in it.....😋

[Srikcir]

8 hours ago, ozz1 said:

there goes there votes in the next election typical politicians

I doubt they voted for the PTP in the first place, more likely MFP

[Srikcir]

23 hours ago, snoop1130 said:

The funding sources for the government’s flagship 500 billion baht handout scheme, better known as the digital wallet, will undergo careful consideration,

Today it appears that funding will be directed within the next fiscal year to the RTN's next submarine and frigate that don't appear to have undergone "careful consideration." RTN 1 : Thais 0