People who receive the government’s 10,000-baht handout will not be able to use the digital cash to buy mobile phones, electrical appliances or electronic devices, authorities said on Wednesday.
The products were put on a so-called negative list by a government sub-committee working on the details of the programme, said Deputy Finance Minister Julapun Amornvivat.
The digital money being given to as many as 50 million eligible people cannot be spent on these products because the government wants to ensure it will be spent at small shops, not big department stores, he said on Wednesday after chairing a meeting of the committee.
As for the sources of funding for the handout, he said, the committee agreed on a proposal to set aside only 80% to 90% of the overall 500-billion-baht budget. This is because not everyone who is eligible is expected to participate, says Mr Julapun.
He referred to a study by the Fiscal Policy Office which found that not all eligible parties registered for the previous government’s co-payment stimulus scheme.
This change proposed to the budgetary planning for the handout will mean the scheme would no longer need loans from the Bank for Agriculture and Agricultural Cooperatives (BAAC) as previously envisaged, said Mr Julapun.
As a result, he said, the government might not have to borrow from the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) as planned earlier.
The funding will come from the 2024 fiscal budget and the 2025 fiscal budget, at 160 billion and 280 billion baht respectively, he said.
“Even if all 50 million eligible people register, the government would still be able to find sufficient funding,” said Mr Julapun.
All of the proposals from Wednesday’s meeting will be forwarded to the main committee overseeing the scheme, chaired by Prime Minister Srettha Thavisin, when it meets on Monday, said Mr Julapun.
The main committee’s decision will then be forwarded to the cabinet for approval, before Mr Srettha on July 24 officially announces the start date, registration and other details, said Mr Julapun.
Registration of people eligible to receive the handout should finish by the end of September and distribution will begin in the last quarter of this year, he said.
Economists and two former central bank governors have criticised the plan, which was put forward by the Pheu Thai Party as its flagship policy in the 2023 election, and said the programme is fiscally irresponsible.
There have also been questions about the legal aspects of seeking a loan from the BAAC and the Council of State, the government’s legal advisory body, was expected to be asked for an opinion. However, a formal request has not yet been received, said Pakorn Nilprapunt, the council’s secretary-general.