Thailand launches Digital Wallet program to boost economy
Date: 2024-07-16 Author: Oliver Abernathy Categories: IN WORLD
Thailand has announced the launch of a $12.4 billion Digital Wallet program aimed at boosting the local economy, despite controversy over its effectiveness.
Program details and goals
Prime Minister Sretta Thaweesin unveiled a plan that would see 50 million Thai citizens receive 10,000 baht (approximately $275) through the Digital Wallet program starting August 1. This initiative aims to support low-income individuals and develop local communities.
The previously announced amount of $13.8 billion was reduced to $12.4 billion due to the lack of demand for previous distributions. The program will be financed from the 2024 and 2025 budgets, as well as partly from the state-owned Bank of Agriculture and Agricultural Cooperatives.
Limitations and Expected Results
Beneficiaries will be required to spend the funds in their local communities, with purchases of alcohol, cigarettes, fuel, services and online transactions prohibited. The program expects to stimulate economic growth, projected by the World Bank to increase Thailand's GDP from 1.9% in 2023 to 2.4% in 2024.
Despite the government's optimism, the Digital Wallet program has faced criticism from economists, who have raised doubts about its long-term effectiveness and concerns about increasing public debt and budget deficits.
The introduction of the Digital Wallet program marks an important step in Thailand's economic policy aimed at overcoming slow economic growth and improving the living conditions of citizens.
