Govt committee discusses cutting budget for digital wallet scheme

Economists, scholars, former Bank of Thailand officials, as well as independent organisations like the National Economic and Social Development Council (NESDC) and the Office of the National Anti-Corruption Commission (NACC) raised concerns at the high costs it will entail.

Prommin Lertsuridej, head of Pheu Thai's economic team, said funding for the scheme would involve budget reallocation, utilising funds outside the budget to ensure no impact on Thailand's credit rating. The plan aims to stimulate the economy by providing digital wallet top-ups to citizens aged 16 and above, which will cost 560 billion baht, with distribution scheduled to commence in February 2024.

The government established a committee led by Prime Minister Srettha Thavisin to drive the digital wallet policy, as well as a subcommittee under Deputy Finance Minister Julapun Amornvivat, which is tasked with summarising budget sources and payment criteria by the end of October.

Reports suggest that the committee discussed various proposals, especially in light of the criticism, leading to potential adjustments for the project to move forward. One of these proposals could see the total fund cut to 400 billion baht, and gradually distributing 10,000 baht to low-income individuals or those eligible for assistance, expected to be around 40 million people, via digital wallets. The spending radius, originally set at 4 kilometres from the recipients’ homes, could also be expanded.

According to a source, the committee met on October 12 and discussed the proposal with economic entities such as the National Economic and Social Development Council (NESDC) and the Bank of Thailand (BOT). 

The committee is particularly interested in utilising digital wallet applications, similar to the previous government's Pao Tung wallet mobile app, due to their existing infrastructure and operational efficiency compared to developing an entirely new blockchain system.

Additionally, the committee emphasised that digital currency distribution is a fundamental government policy aimed at stimulating the economy. The chosen system must be built on blockchain technology. It was also noted that the current government does not own the digital wallet application and has not been involved in its design and operation since its inception.

The committee will hold multiple meetings going forward to discuss opposition from the larger society and proposals from various organisations. No specific details have been finalised , the source stressed, adding that these early meetings were merely initial discussions.

The comprehensive details are expected to be concluded by the end of this month and will cover participation criteria, project duration, and funding sources. For now, any information released to the public is subject to change and does not represent the committee's final conclusions.