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The digital wallet scheme is a government handout scheme created by the Thai government that aims to allow eligible Thai citizens to receive ฿10,000 (US$275) each through a
digital wallet A digital wallet, also known as an e-wallet, is an electronic device, online service, or software program that allows one party to make electronic transactions with another party bartering digital currency units for goods and services. This ca ...
to spark economic growth. The scheme is the flagship policy of the
Pheu Thai party The Pheu Thai Party (PTP; th, พรรคเพื่อไทย, lit=For Thais Party, , ) is the third incarnation of a Thai political party founded by former prime minister Thaksin Shinawatra. The Pheu Thai Party was founded on 20 Septemb ...
and the Srettha and Paetongtarn governments. The around ฿450 billion handout is estimated to reach 45 million registered people. The scheme is designed to spark economic growth in Thailand's sluggish
economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with t ...
post-
COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was identified in Wuhan, China, in December 2019. The disease quickl ...
by increasing the country's
GDP Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is of ...
, growth and household
purchasing power Purchasing power is the amount of goods and services that can be purchased with a unit of currency. For example, if one had taken one unit of currency to a store in the 1950s, it would have been possible to buy a greater number of items than would ...
through promoting consumption at the local level amongst lower level income earners. It also aims to promote digitisation. Phrase 1 of the scheme was launched on 25 September 2024, with the initial 14.2 million recipients being welfare card holders and the disabled. It has been criticised by economists who label it as costly and harmful to Thailand's economy.


Eligibility and restrictions

The requirements to receive the handout recipients must be at least 16 years old by 30 September 2024 and a Thai citizen. The recipient's yearly income must also be below ฿840,000 and bank accounts should contain less than ฿500,000 by 31 March 2025. The requirement of
bank account A bank account is a financial account maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded. Each financial institution sets the terms and conditions for each type o ...
s applies to current, savings and fixed-deposit accounts, but not state bank savings lotteries or foreign currency deposits. Recipients must also not be currently serving out a prison sentence or have a prison sentence. Shop owners and people with a record of fraud are also excluded. Out of Thailand's population of around 67 million, the government estimated that about 50 million people were eligible for the scheme, although the Ministry of Finance estimated only 45 million people would register. 36 million registered in the first round of registration. After the ฿10,000 has been distributed, there is a 6-month time limit to when you can spend it. It can't also be withdrawn as cash, however people who receive the handout in the first phrase will also receive some of it in cash. There are also restrictions on where and what the money can be spent on. It can only be spent within the recipient's registered
district A district is a type of administrative division that, in some countries, is managed by the local government. Across the world, areas known as "districts" vary greatly in size, spanning regions or county, counties, several municipality, municipa ...
and at participating businesses, which excludes major retail stores, wholesale outlets and department stores. Originally, the money could only be spent within a radius around where they lived. However, an obstacle to this is that a large portion of the eligible population in urban centres like
Bangkok Bangkok, officially known in Thai as Krung Thep Maha Nakhon and colloquially as Krung Thep, is the capital and most populous city of Thailand. The city occupies in the Chao Phraya River delta in central Thailand and has an estimated populatio ...
and
Chiang Mai Chiang Mai (, from th, เชียงใหม่ , nod, , เจียงใหม่ ), sometimes written as Chiengmai or Chiangmai, is the largest city in northern Thailand, the capital of Chiang Mai province and the second largest city i ...
are registered in other
provinces A province is almost always an administrative division within a country or state. The term derives from the ancient Roman ''provincia'', which was the major territorial and administrative unit of the Roman Empire's territorial possessions outsi ...
. Additionally, the money can't be spent on 18 items, which include
alcohol Alcohol most commonly refers to: * Alcohol (chemistry), an organic compound in which a hydroxyl group is bound to a carbon atom * Alcohol (drug), an intoxicant found in alcoholic drinks Alcohol may also refer to: Chemicals * Ethanol, one of sev ...
,
cannabis ''Cannabis'' () is a genus of flowering plants in the family Cannabaceae. The number of species within the genus is disputed. Three species may be recognized: '' Cannabis sativa'', '' C. indica'', and '' C. ruderalis''. Alternativel ...
products, cash and souvenir vouchers,
diamond Diamond is a solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the chemically stable form of carbon at room temperature and pressure, ...
s, electrical appliances, electronic equipment, fuel oil,
gems Gems, or gemstones, are polished, cut stones or minerals. Gems or GEMS may also refer to: Arts, entertainment and media * ''Gems'' (Aerosmith album), 1988 * ''Gems'' (Patti LaBelle album), 1994 * ''Gems'' (Michael Bolton album), 2011 *Gems TV, a ...
,
gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile ...
,
kratom ''Mitragyna speciosa'' (commonly known as kratom, an herbal leaf from a tree of the Rubiaceae family, ) is a tropical evergreen tree in the coffee family native to Southeast Asia. It is indigenous to Thailand, Indonesia, Malaysia, Myanmar, and ...
products,
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,
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,
tobacco Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ch ...
, services, or online products. There exists doubt over the government's ability to monitor spending and prevent the purchase of restricted items, although these restrictions are built into the digital wallet. An April survey by
Siam Commercial Bank Siam Commercial Bank ( th, ธนาคารไทยพาณิชย์; ) is a Thai bank that was founded on 30 January 1907. History SCB was founded as the "Book Club" on 4 October 1904 by Prince Jayanta Mongkol, a brother of King C ...
found around 40% of those surveyed intended to spend it on necessities such as food and health products. In the same survey, over 80% said they would redirect their personal income to make loan payments or invest in businesses while the handout money would buy what their personal income would've bought.


Financing

The Srettha government has frequently flip-flopped over how the scheme would be financed. The Pheu Thai party had proposed that it be funded through the budgets, but the new coalition government led by Srettha instead proposed a special parliament bill to request one-time borrowing. The bill was met with criticism by the
Bank of Thailand The Bank of Thailand (BOT) ( Abrv: ธปท.; th, ธนาคารแห่งประเทศไทย, ) is the central bank of Thailand. History The Bank of Thailand (BOT) was first set up as the Thai National Banking Bureau. The Ban ...
, economists and the opposition
Move Forward party The Move Forward Party ( th, พรรคก้าวไกล, ) is a social democratic and progressive political party in Thailand that opposes the remaining influence of the military junta, which ruled the country from 2014 to 2019. It was f ...
. The government then sought to have it funded by the Bank for Agriculture and Agricultural Cooperatives (BAAC). However, the legality of this was in question as it could violate laws governing government saving banks. This was then changed in favour of pulling money out of the governments 2024-2025 fiscal budget. This change was announced on 10 April 2024, where Prime Minister Srettha Thavisin said the scheme would be funded solely by the 2024-2025 fiscal budget. According to the Deputy Finance Minister Julapun Amorvivat, the needed ฿450 billion will be funded by ฿175 billion from the 2024 budget, ฿152.7 billion from the 2025 budget, and ฿172.3 billion from the BAAC's 2025 budget. The total cost also dropped from ฿500 to ฿450. After phrase 1 was launched on 25 September, Deputy Finance Minister Paopoom Rojanasakul announced that the government had sufficient funding for phrase 2 to go ahead. phrase 1 had used ฿145 billion, with ฿180 billion already allocated to phrase 2.


Project history


Background

Thailand's recovery from the COVID-19 pandemic and its effects has been slow. Thailand has the highest public debt to gross domestic ratio in
Southeast Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical United Nations geoscheme for Asia#South-eastern Asia, south-eastern region of Asia, consistin ...
at over 64%. The idea of the digital wallet scheme was first conceived by the Pheu Thai party in the leadup to the 2023 general election. During the election, it was one of the party's major campaign promises.


Under the Srettha government

The scheme was finalised by the National Digital Wallet Policy Committee headed by Srettha on 10 April with a planned roll out in the fourth quarter. The scheme was approved in principle by the
Srettha cabinet The Srettha cabinet, formally known as the 63rd Council of Ministers (คณะรัฐมนตรีไทย คณะที่ 63), was formed after the May 2023 Thai general election. The coalition is led by Pheu Thai Party which nominate ...
on 23 April.


Under the Paetongtarn government

Srettha was dismissed as prime minister by the
constitutional court A constitutional court is a high court that deals primarily with constitutional law. Its main authority is to rule on whether laws that are challenged are in fact unconstitutional, i.e. whether they conflict with constitutionally established ...
on 14 August and succeeded by the leader of the Pheu Thai party and daughter of
Thaksin Shinawatra Thaksin Shinawatra ( th, ทักษิณ ชินวัตร; ; ; Chinese: 丘達新; cnr, Taksin Šinavatra; born 26 July 1949), is a Thai businessman, politician and visiting professor. He served in the Thai Police from 1973 to 1987, ...
, Paetongtarn Shinawatra. Although Thaksin, who was prime minister between 2001 and 2006, holds no formal position in his daughter's government, he has held considerable influence over Thai politics since his return from exile on 22 August. On 22 August 2024, he confirmed his and the Paetongtarn government's support for the scheme. At the scheme's launch, Paetongtarn announced that the scheme would "create a tornado of spending".


Implementation

The scheme is primarily being implemented through the Thang Rath app and is the primary platform for eligible people to register with. Registration is also available at participating
7-Eleven 7-Eleven, Inc., stylized as 7-ELEVE, is a multinational chain of retail convenience stores, headquartered in Dallas, Texas. The chain was founded in 1927 as an ice house storefront in Dallas. It was named Tote'm Stores between 1928 and 1946. ...
s,
Thailand Post Thailand Post (THP) ( th, ไปรษณีย์ไทย, ), formerly part of the Communications Authority of Thailand until 2003, is a state enterprise that provides postal services in Thailand. The Post and Telegraph Office was first esta ...
offices, Boonterm and government service kiosks, and on the ThaID app. Registration through the Thang Rath app opened between 1 August 2024 and 15 September. When registration closed on 15 September, only 36 million people had registered, 9 million short of the planned 45 million. According to the Ministry of Finance, the exclusion of 9 million people saved around ฿100 billion. A second round of registration for people unable to register online was open between 16 September and 15 October. For businesses to participate in the scheme, a separate application process will open on 1 October. According to the Ministry of Commerce, 1.6 million businesses are eligible. The scheme was originally meant to begin on 1 February 2024 but was delayed. In late March, the scheme was again delayed from May to the fourth quarter of 2024.


Phrase 1

Phrase 1 of the scheme was launched on 25 September 2024 and was targeted towards vulnerable groups. Totally around 14.5 million people, this included 12.4 million welfare card holders and 2.1 million people with disabilities. Distribution of the scheme is staggered, with payments being distributed in phrase 1 between September 25 and 30 depending on their welfare card numbers, while all recipients with disabilities received payment on September 25. This is to avoid overwhelming the banking system. By 1 October, around 200,000 people had experienced unsuccessful transfers due to them not linking their accounts to PromptPay. For those with unsuccessful transfers, the Ministry of Finance coordinated with the
Ministry of Social Development and Human Security The Ministry of Social Development and Human Security ( Abrv: MSDHS; th, กระทรวงการพัฒนาสังคมและความมั่นคงของมนุษย์, ), is a Thai governmental body responsible fo ...
to help them link accounts. More transfers have been announced for 22 October, 22 November and 22 December. Phrase 1 had a ฿145 billion budget.


Impact

The Thai government has said that the scheme will boost Thailand's GDP by 1.2 to 1.8 percentage points and cause growth in 2025 to be at 5%. Others have given smaller estimates, with ''The'' ''Thaiger'' estimating it will boost Thailand's GDP by 0.33 to 0.6 percentage points in the short term. According to InnovestX, a subsidiary of Siam Commercial Bank, companies who run convenience stores, supermarkets, and hypermarkets will be major beneficiaries of the scheme. This includes CP All and Berli Jucker, which operates
Big C Big C ( th, บิ๊กซี ซูเปอร์เซ็นเตอร์), is a grocery and general merchandising retailer headquartered in Bangkok, Thailand. Big C is as of 2016 Thailand's second-largest hypermarket operator after Lotus' ...
and. These companies, alongside financial lenders, have seen their stock prices increase as a result of the scheme. Although recipients are not allowed to spend the handout at department stores and hypermarkets, Pavida Pananond of Thammasat Business School said the line between hypermarkets and convenience stores is blurred. Following the launch of phrase 1, ATM withdrawals in Thailand have surged, especially at BAAC branches where withdrawals have increased by 18 times.


Reception


Criticism

The scheme has been repeatedly criticised by the Move Forward and Democrat parties when they were in the opposition. Sethaput Suthiwartnarueput, governor of Thailand's central bank the Bank of Thailand, said in April 2024 that Thailand's post-COVID-19 recovery was gaining momentum and did not warrant a large stimulus such as the scheme.{{Cite news , last= , first= , title=Digital wallet scheme coming in Q4, says Srettha , url=https://www.bangkokpost.com/business/general/2774191/thailand-to-roll-out-13-8bn-handout-scheme-in-q4-says-prime-minister-srettha-thavisin , access-date=2024-10-01 , work=Bangkok Post , language=en


References

Welfare in Thailand Government programmes of Thailand Economic history of Thailand 2023 in Thailand 2024 in Thailand