Government defends B10,000 handout funding

Allocating B43 billion from central fund raises concerns that there will be less to help the needy

The government insisted on Friday that its plan to allocate 43 billion baht from the central budget to partly fund the digital wallet programme would not affect its efforts to relieve the hardship of people.

Prime Minister’s Office Minister Chakkraphong Saengmanee, who oversees the Budget Bureau, played down concerns that using such a large portion of the central fund to finance the handout, expected to cost at least 450 billion baht, would leave the government with insufficient resources to help those in need.

The concerns were raised by Sirikanya Tansakul, deputy leader of the main opposition Move Forward Party, when she questioned Prime Minister Srettha Thavisin on Thursday about the digital wallet and the government’s economic management.

Mr Chakkraphong said the government thoroughly reviewed the budget spending plan and previous central fund expenditures before making the decision.

According to the minister, the 43 billion baht represents approximately 40% of the central fund, which totals 99.6 billion baht. He said the Budget Bureau consulted with the secretary-general of the Council of State, the government’s legal adviser, who approved the decision to proceed.

Mr Chakkraphong emphasised that the government aimed to address concerns and avoid the misconception that it was “reserving” the central fund solely for the digital wallet programme.

He expressed confidence that the government could effectively manage resources and stimulate the economy.

The digital wallet programme is expected to begin in the fourth quarter, when as many as 50 million Thais aged 16 and over will receive 10,000 baht to be spent within the districts where they are registered.

Economists and two former central bank governors have criticised the plan, which was put forward by the Pheu Thai Party as its flagship policy in the 2023 election, and said the programme is fiscally irresponsible.

Deputy Finance Minister Paopoom Rojanasakul stressed recently that items excluded from the digital wallet scheme include electrical appliances, electronic and communication devices including mobile phones due to their high import content, as the goal is to ensure the money spent remains in the country.

The final decisions on matters related to the handout are expected to be made on Monday when the prime minister chairs a meeting of the digital wallet policy committee. Mr Srettha is scheduled to announce all the details to the public on July 24.

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