The third phase of the government's 10,000-baht cash handout scheme will be distributed through a digital payment platform, according to Deputy Finance Minister Julapun Amornvivat.
Mr Julapun said the government's digital wallet policy has already been implemented via two phases. The first involved distributing 10,000 baht to 14.5 million people who hold state welfare cards and disability cards.
The second phase, which is set to be distributed to about 4 million elderly individuals aged 60 and above, will begin before Jan 29, 2025.
The second phase is expected to cost no more than 40 billion baht. Both phases involve distributions to those who registered via the government's Tang Rat app, with money being provided as cash transfers via PromptPay.
For the third phase, the Finance Ministry will distribute money through a digital payment platform system, he said. To qualify for this phase, recipients must be Thai citizens aged 16 or above, with an annual income below 840,000 baht and bank deposits under 500,000 baht.
The government and the Bank of Thailand are scheduled to begin the system testing phase in February 2025, with transfers expected to begin in the second quarter.
He said the Digital Government Development Agency is developing the system in collaboration with private consultants, and they expect the project to commence around the second quarter of 2025.
Mr Julapun also said the central platform system for the project is progressing well, with plans to begin testing the money transfer system in February. This step is crucial before integrating it with participating bank apps.
According to Mr Julapun, during the testing phase, representatives from the central bank will participate in verifying the system's performance to ensure it meets payment system standards on par with commercial banks, ensuring stability across the payment system.
He said the government is ready to offer the system testers time to complete their evaluations until the standard set by the central bank is met in order to build public trust.
Regarding the 10,000-baht distribution for elderly individuals in the second phase, Mr Julapun said the Finance Ministry has already screened information on the registrants aged 60 and above through the Tang Rat app, with around 3.2 million eligible individuals identified so far.
The Finance Ministry is also coordinating with relevant agencies to further screen the eligibility criteria for the third phase of the project, including an income cap of 840,000 baht per year for the 2023 tax year and combined deposits across all financial institutions not exceeding 500,000 baht as of March 31, 2024.
Those who received money in the first phase, such as state welfare cardholders and people with disabilities, are excluded.
Mr Julapun also urged eligible seniors to link their PromptPay accounts with their 13-digit ID numbers to receive the 10,000-baht payment.
The screening process is expected to be completed, and payments will begin before Jan 29, 2025, or before the Chinese New Year festival, he said.
Additionally, the Finance Ministry is planning to meet with related agencies to discuss the registration process for individuals without smartphones after the New Year holiday.
Mr Julapun also mentioned the central bank's letter, which offered opinions on the 10,000-baht cash handout project.
The letter expressed concerns about the growing fiscal deficit and suggested the government monitor and assess the project's effectiveness, manage borrowing tools and expedite the repayment of principal to mitigate the risk of rising borrowing costs.
Additionally, it recommended the government allocate part of the project's budget for further public investments.
Nevertheless, he said the central bank is not opposed to the government's stimulus projects but is offering suggestions as part of its duties. He emphasised that these suggestions will not affect the implementation of the third phase of the 10,000-baht digital wallet project.
He also reiterated that the collaboration between the Finance Ministry and the central bank is progressing well and is expected to continue improving.
