Thailand weighs budget support as option for US$14 billion digital wallet plan
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THAILAND’S government will weigh the option of funding a US$14 billion cash handout plan from the state budget, as Prime Minister Srettha Thavisin’s flagship programme to revive a sluggish economy through a one-time borrowing faces hurdles.
The prime minister ordered the Finance Ministry and the Budget Bureau officials to come up with a financing plan that may also involve a combination of borrowing and the state budget, Lavaron Sangsnit, permanent secretary at the ministry, told reporters on Wednesday (Mar 27). The plan will be presented to Srettha, who also doubles as the Finance Minister, and the so-called digital wallet committee on April 10, he said.
“Previously, there wasn’t an option to use fiscal budget as a funding source,” said Lavaron. “But there are more options now as we are in the process of drawing up the next” spending plan for the fiscal year starting Oct 1.
The cash stimulus plan, delayed by several months over differences on how it will be funded, is set to be implemented in the fourth quarter of calendar year 2024. Some central bankers and opposition parties have argued that the payout may fan inflation and widen fiscal deficit.
The salient features of the handout – 10,000 baht (S$369.58) each to 50 million adult Thais – will remain as announced previously, officials have said. The money is to be spent on goods and services within a specific time-frame in a designated area.
Srettha, who chaired a meeting of the panel overseeing the programme on Wednesday, said all the details will be finalised on April 10. The plan will then be submitted to the Cabinet by the end of April, he said.
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The premier said the panel that includes representatives of the Bank of Thailand and the National Economic and Social Development Council acknowledged that there’s a need to stimulate the economy as it’s in trouble.
The stimulus measures, including the digital wallet, are “extremely necessary” as Thai economy is coming off a decade of average sub-2 per cent growth and faced other problems including uneven economic recovery post the pandemic and high interest rates, Srettha said. BLOOMBERG
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