Prime Minister Srettha Thavisin convened an urgent session of the Monetary Policy Committee on Monday (Apr 1) to deliberate on funding for the digital wallet initiative, shifting the venue from the Finance Ministry to Government House for discussions centered around expanding the fiscal 2025 budget deficit and additional borrowing.
The initial budget plan marked the deficit at 713 billion baht, with provisions allowing for up to 820.8 billion baht in borrowing to cover this shortfall. Expenditure proposals for 2025 tally up to 3.6 trillion baht, juxtaposed with anticipated revenue of 2.887 trillion baht, incorporating regular spending, investments, and loan repayments. Details from the meeting remain undisclosed.
In parallel, Deputy Finance Minister Julapun Amornvivat signaled that the specifics of sourcing the 500 billion baht required for the digital scheme would crystallize post an April 10 convening of the national digital wallet policy committee, presided over by Srettha. He noted that the session was crucial in revealing the financial plan for the government’s key initiative, originally pledged by Srettha and the Pheu Thai Party as a 10,000 baht handout for all during their campaign. This plan, however, has been adjusted to focus on 50 million Thais with lower incomes.
The Bank of Thailand has advised a more targeted approach, advocating for the distribution of funds solely to vulnerable groups, arguing it would yield greater economic benefits. With consumption levels in several income brackets rebounding to pre-pandemic figures, the central bank noted that extending handouts to those already at sufficient income levels would not significantly stimulate the economy, contrasting with the proposed broad disbursement strategy. (NNT)
