The government is considering revising its 10,000-baht digital wallet handout scheme by excluding wealthy people, Deputy Finance Minister Julapun Amornvivat said on Tuesday.
The proposal comes at a time when the government of Prime Minister Srettha Thavisin has been defending the centrepiece of its economic revival policy against critics who say that its cost, at 560 billion baht, is too much. As well, they say, it is still not clear how the programme will be funded.
The digital wallet steering committee will consider revising the scheme when it meets on Wednesday, or on Oct 19, to exclude wealthy people, as some critics have suggested, Mr Julapun said.
But he insisted the scheme is necessary to help kickstart the economy next year, adding that the government expects to see 5% economic growth if the programme performs as expected.
The country has long-standing problems that have drastically affected people’s living conditions, while it has been collected fewer taxes, Mr Julapun noted.
Household debt has also increased to nearly 90% of gross domestic product (GDP), while public debt has risen from 40% a decade ago to more than 60% of GDP.
The Pheu Thai Party proposed the handout of 10,000 baht to all adult Thais over age 16 as a way to get money circulating in the economy, creating a multiplier effect that in turn would lead to increased tax collection. It is expected to start in February.
The scheme will go ahead despite opposition from more than 120 scholars, researchers, economic experts and even two former Bank of Thailand governors, Mr Julapun said.
He insisted that the government has been listening to the concerns expressed, but many people have been waiting for the project to begin, so the government will not back off.
The project will still target vulnerable groups and low-income people, he said, even if people who are better off were excluded.
The government expects people to begin registering for the scheme next month, Mr Julapun said, adding that if they do not do so, it means they will not want to join the scheme.
The committee will also consider expanding the scope of the use of the digital money. It may widen the 4km radius from a person’s home to within the tambon, district or even province where their official house registration is located.
Mr Julapun reiterated the government’s contention that there will be sufficient financial sources to fund the project.
He declined to give more details, saying only that the Budget Bureau is considering reducing the budgets of some other government projects for the next fiscal year to help fund it.
