Thai government struggles to fund digital wallet scheme for cash handouts, exploring borrowing options amidst legality concerns. Critics debate impact on businesses and economy, highlighting complexities of the initiative.
Challenges in Funding the Digital Wallet Scheme
The Thai government is facing challenges in funding its digital wallet scheme, which involves providing cash handouts to the population. Due to difficulties in securing funds, the government is exploring borrowing options to finance the program. However, this approach has raised concerns about the legality and long-term financial implications of the scheme.
Exploring Alternative Funding Sources
Prime Minister Srettha Thavisin has abandoned the original plan of direct borrowing and is now looking to extract funds from the annual budgets of fiscal years 2024 and 2025. Additionally, funds will be sourced from the state-owned Bank for Agriculture and Agricultural Cooperatives to support the scheme. These alternative measures aim to ensure the project’s viability while avoiding constitutional violations.
Debate Over Scheme’s Impact on Businesses and Economy
There is a debate surrounding the potential benefits of the digital wallet scheme for businesses, with critics expressing concerns about favoritism towards big retailers over small shop owners. While the government highlights the economic stimulus and GDP growth potential of the scheme, some economists advocate for productive investments to enhance Thailand’s competitiveness. The ongoing discussion underscores the complexities and challenges associated with the implementation of the digital wallet initiative.
Source : Thai PM faces Challenges Securing Funding for Digital Wallet Scheme
