Thailand has funds to finance US$13.8 billion handout scheme, official says
It plans to disburse 10,000 baht each to about 50 million Thais
THAILAND’S government has sufficient funds to finance a 500 billion baht (S$18.5 billion) household handout scheme, which is on track to be rolled out in the fourth quarter, a deputy finance minister said on Wednesday (Jul 10).
The government has prepared 450 billion baht from the 2024 and 2025 fiscal Budgets for the programme, and may not need to use funds from a state-owned bank, Julapun Amornvivat said.
“I confirm that this project is moving ahead. The money will reach the people in the fourth quarter and will benefit them,” he added.
Julapun noted, however, that the project was not expected to be fully taken up. Thailand’s past government projects have had no more than 90 per cent of the target number of people registered.
The so-called “digital wallet” handout scheme – which involves a giveaway of 10,000 baht per person to 50 million Thais to be spent in their communities – has been delayed to the fourth quarter of this year due to funding issues.
Economists and two former central bank governors have criticised the plan as fiscally irresponsible. It was put forward by the ruling Pheu Thai party as its flagship policy in the 2023 election.
The Thai government has previously said it will finance the policy from the 2024 and 2025 Budgets, and with capital from the state-owned Bank for Agriculture and Agricultural Cooperatives. REUTERS
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