TDRI: Digital wallet offers only short-term economic stimulation
The Thailand Development Research Institute (TDRI) views the Pheu Thai Party's digital wallet handout policy as merely a short-term measure to boost the Thai economy.
The policy of distributing digital money involves a significant budget allocation. If it proceeds, additional conditions should be attached, such as promoting new job skills and providing wage subsidies, the Institute says.
If such a policy can be revised to assist only the truly disadvantaged, it would require a smaller budget and could be sustained for several years.
The new government is scheduled to announce this policy to the Parliament today (September 11) before moving forward with governance amid economic challenges. The government has several policies aimed at achieving quick results, such as distributing 10,000 baht of digital money to individuals aged 16 and above and reducing the prices of oil and electricity. These measures are being closely monitored, especially in terms of the country's financial capacity in the coming period.
According to TDRI president Somkiat Tangkitvanit, the digital wallet money distribution aimed at boosting economic growth can only occur once, and the positive impact it engenders will not spread over two years.
Using a significant amount of government funds –560 billion baht will be needed to distribute 10,000 baht to each individual – would increase Thailand's gross domestic product (GDP) in 2024. However, the economic stimulus would quickly fade, and the government would run out of ammunition for economic injection because it has utilised a substantial amount of money inefficiently.
Achieving 5% economic growth next year is not difficult if it is done by distributing money. However, in the long term, the handout should be carefully considered. The use of technology should also be studied for its suitability rather than as a gimmick. Spending 560 billion baht should align with realistic goals.
If the focus can be revised to assist only the 4.4 million Thais living below the poverty line, which would require a much smaller budget, distributing the digital wallet money could benefit these people for an additional 15-16 years, instead of a one-time distribution, Somkiat said.
