The Thai government’s ambitious $15 billion digital cash stimulus program has generated a mix of anticipation and skepticism among the public, economists, and businesses. While it aims to bolster the country’s economy and increase the spending power of low-income earners, concerns have arisen about the potential impact of this substantial financial injection.
The scheme, initiated by the ruling Pheu Thai Party, promises to provide a 10,000-baht digital cash handout to approximately 56 million Thais aged 16 or above. However, the catch is that this digital money must be spent within six months on specific goods and services, particularly from local businesses near the recipient’s registered address.
This requirement has raised concerns, especially among those who live far from their hometowns in rural areas. In these regions, limited access to businesses accepting digital payments may make it challenging to fully enjoy the benefits of the program. Critics argue that the program may primarily benefit the wealthy and large businesses, as smaller shops could struggle to handle the surge in demand.
A group of 99 academics, economists, and former Bank of Thailand governors has expressed reservations about the program, warning that such massive short-term spending could lead to public debt and threaten Thailand’s long-term financial stability. They argue that this approach may ultimately result in higher taxes and inflation, placing the burden on the public.
Despite these concerns, Prime Minister Srettha Thavisin remains committed to the policy, emphasizing its potential to stimulate local economies and employment. The government, however, has yet to determine the funding sources for this significant initiative, leading to suggestions of delaying the program or splitting payments into two rounds.
The digital cash stimulus program was a key campaign promise for the Pheu Thai Party, which is eager to regain political ground after a previous electoral defeat. Critics point out that while populist policies can assist the less fortunate, they should also promote self-improvement and productivity among beneficiaries, rather than merely distributing funds. The road ahead for Thailand’s ambitious digital cash program remains uncertain, with concerns and discussions continuing among various stakeholders.
(Source: CNA | Nikkei Asia)
