The government's 500-billion-baht digital wallet handout scheme will roll out in force in the fourth quarter to boost economic growth, Prime Minister Srettha Thavisin said on Wednesday.
The ruling Pheu Thai Party's flagship policy will transfer 10,000 baht to 50 million Thais to spend in their localities within six months.
Mr Srettha, who doubles as the finance minister, said at a briefing the policy would boost GDP by 1.2 to 1.6 percentage points.
He said the economy needs major stimulus measures, given it may have edged up less than 1% in the first quarter after annualised growth of 1.7% in the last three months of 2023.
He said the handout will inject cash flow to ease the plight of locals affected by rising living costs while upgrading the quality of life of vulnerable groups and farmers.
The scheme will strengthen local economies so more communities can be self-reliant, Mr Srettha said, adding it will also support efforts to develop digital technologies and innovation.
"Today, the government is delighted to announce that the 10,000-baht digital wallet handout scheme, which is the government's flagship policy, will officially begin.
"The government has been trying its utmost to overcome obstacles and limitations until this day, when it has acted on its promise. The policy is in line with the law and strictly complies with financial discipline," Mr Srettha said.
Deputy Finance Minister Julapun Amornvivat said the digital wallet scheme, which requires 500 billion baht, will be financed by three sources of funding.
A total of 152.7 billion baht will be drawn from the budget for the 2025 fiscal year, while another 172.3 billion baht will be borrowed from the Bank for Agriculture and Agricultural Cooperatives' (BAAC) budget for the 2025 fiscal year under Section 28 of the State Fiscal and Financial Disciplines Act.
This amount will be given to 17.23 million farmers.
The other 175 billion baht will come from the reallocation of the budget for the 2024 fiscal year, Mr Julapun said.
Those eligible can register for the handout in the third quarter and spend it in the fourth, he said.
A subcommittee under the Digital Wallet Policy Committee will be set up to monitor any actions that may breach the scheme's criteria and other related laws, Mr Julapan said, adding the Finance Ministry will present the scheme for cabinet approval this month.
Lavaron Sangsnit, permanent secretary for finance, insisted the scheme will be funded in line with the Budget Act and the State Fiscal and Financial Disciplines Act.
Thais aged 16 and older who earn less than 70,000 baht a month and have less than 500,000 baht in their bank accounts stand to receive a 10,000-baht handout.
Based on these criteria, an estimated 50 million people will be eligible -- down from 56 million originally.
The money can only be used to buy food and consumer goods. It cannot be used to buy online goods, cigarettes or liquor, cash vouchers or valuables like diamonds, gems or gold.
It also cannot be used to pay off debts or cover water or electricity bills, fuel, natural gas or tuition fees. The money must be spent in the district where the recipient's home is registered.
The government has been struggling to find ways to finance the scheme without imposing burdens on public debt as it has come under heavy criticism from some economists and former central bank governors, who have billed the scheme as fiscally irresponsible.
Writing on Facebook on Wednesday, Somchai Srisutthiyakorn, a former election commissioner, took aim at some of the scheme's details.
He said the government had not given details regarding the interest rate to be charged on the 172.3-billion baht loan it plans to take from the BAAC as well as the loan repayment period.
