Those earning THB70k a month not eligible for digital wallet handout: PM
Thais earning a monthly salary of 70,000 baht or having a bank balance exceeding 500,000 baht would not be eligible for the government’s digital wallet handout scheme, Prime Minister Srettha Thavisin said on Friday.
The Pheu Thai Party had made a controversial election pledge, promising a handout of 10,000 baht to all Thai citizens aged 16 and above as part of a stimulus plan to kickstart the economy.
Following widespread criticism, the meeting of the digital wallet policy committee on Friday, chaired by Srettha, came up with revised guidelines on eligibility for the handout.
Srettha told media that he had decided to make alterations to the eligibility after hearing opinions and ideas from many parties.
The revised scheme would permit Thai nationals 16 years and older, whose monthly salary is less than 70,000 baht or who have less than 500,000 baht in their bank accounts to be eligible for the handout.
Srettha said that under the revised regulations, up to 50 million people would be eligible, lesser the previous 54 million.
Increasing budget
Despite lowering the number of eligible people, the premier said that implementing the policy would require as much as 600 billion baht — 40 billion baht higher than the figure Srettha had mentioned before taking office.
He explained that money would be divided into two components: 500,000 baht earmarked for direct distribution to the public, and the remaining 100,000 designated for the promotion of the country's digital economy infrastructure like enticing more investments.
The prime minister revealed the scheme would be funded through borrowings. The government would draft an act, have it reviewed by the Council of State, place it before the Cabinet, and then send it to Parliament for approval.
Srettha reiterated that the scheme would not violate the fiscal discipline of the country and that the project was expected to be implemented by May.
Where and how to use the money
Srettha said recipients of the handout would have to use it within six months and purchases could be made only at the stores listed in the area of each person's National ID card address.
He clarified further that digital wallet can be used only for the purchase of commodities, not for buying products on online selling platforms, sin products, and jewellery, or to pay off debts or bills, or educational expenses. Also, recipients would not be able to get cash.
Besides the handout, the government also plans to launch another initiative called “E-refund”, created for those excluded from the 10,000-baht giveaway.
Srettha said through the E-refund project, which is scheduled to be launched in January, taxpayers could have their taxes reduced if they purchased products with a value of up to 50,000 baht.
The PM said those who wished to participate would need to register for the handout.
Srettha reiterated that the giveaway was crucial for revving up the Thai economy, which he believes was worse off than other neighbouring nations.
Thailand's gross domestic product has grown by only 1.9 per cent this year, coupled with household debt that currently accounts for 91% of GDP, he said.
