Thailand begins first phase of $14bn ‘digital wallet’ stimulus scheme, by Reuters

BANGKOK (Reuters) – The Thai government on Wednesday launched the first phase of its flagship $14 billion stimulus plan, which will eventually see about 45 million people receive 10,000 baht each, saying will trigger economic activity.

In the initial phase, 10,000 baht will be distributed in cash to 14.5 million welfare card holders and people with disabilities, and is expected to be completed by the end of the month.

“Cash will be put into the hands of Thais and create a tornado of spending,” Prime Minister Paetongtarn Shinawatra said at an event to mark the start of the program.

The ‘digital wallet’ scheme was initially structured to distribute the funds via a smartphone app, with the money to be spent in local communities within six months.

“There will be more stimulus measures and we will move forward with the digital wallet policy,” Paetongtarn said.

The scheme has been criticized by economists, including two former central bank governors, as fiscally irresponsible. The government denies this, but has struggled to find sources of funding.

Southeast Asia’s second-largest economy is expected to grow by 2.6 percent this year, after a 1.9 percent expansion, trailing the region.

($1 = 32.61 baht)