Despite facing significant criticism from experts, Prime Minister Srettha Thavisin confirmed on Friday that the Thai government will proceed with its plan to provide a 10,000-baht digital wallet to every Thai citizen aged 16 and older. This decision comes in response to remarks made by Bank of Thailand (BoT) governor Sethaput Suthiwartnarueput, who had expressed disapproval of the economic stimulus policy.
PM Srettha stressed that his ruling Pheu Thai Party remains open to all suggestions regarding the program. The government is committed to implementing the digital wallet initiative for an estimated 56 million people, with a projected launch date of February 1. However, the funding source for the proposed 560 billion baht (US$ 15,159,720,800) budget has not yet been disclosed.
Veerathai Santiprabhob, the former BoT governor, expressed his concerns on Facebook on Friday. He cautioned that previous short-term populist policies by past governments had resulted in fiscal burdens that negatively affected the economy in the long run. Veerathai cited examples such as the rice price guarantee program and the first car policy.
He also suggested that the current policy, which focuses on GDP growth and is seen as a temporary solution, might backfire and erode Pheu Thai’s popularity in the upcoming election. He argued that other government projects could suffer due to the budgetary strain caused by this costly initiative.
Furthermore, this policy has faced strong opposition from a group of 99 economics experts who have collectively called on the government to abandon the program. They argue that the economy is already in a recovery phase, with many analysts predicting a growth rate of 2.8% this year and a further 3.5% in 2024.
In their joint statement, scholars, researchers, and economics professors contend that such cash distributions could lead to increased inflation and interest rates. They believe it is unnecessary for the government to stimulate personal consumption and argue that the focus should instead be on enhancing the public sector’s capacity for investment and exports.
