Thailand Launches $12.4B Digital Cash Program

Thailand's Prime Minister Srettha Thavisin announced that eligible businesses and individuals can register from August 1 for the 'Digital Wallet' program, aimed at boosting the lagging economy. The program, originally announced in April, will distribute 10,000 baht (approximately $275) to 50 million citizens to spend at local businesses, costing around $12.4 billion. This initiative was a major campaign promise of the ruling Pheu Thai party and is expected to boost GDP growth by 1.2 to 1.6 percentage points. However, the program has faced criticism from economists who argue it is an ineffective way to achieve sustainable economic growth and has faced several financing hurdles. Initially planned to be funded by the state Bank for Agriculture and Agricultural Cooperatives, the funding will now come from the 2024 and 2025 fiscal budgets. The program excludes purchases of alcohol, cigarettes, fuel, services, and online transactions and is expected to stimulate local consumption.