Go ahead a 10,000-baht digital wallet scheme

Chatrudee Theparat

Go ahead a 10,000-baht digital wallet scheme

The government will continue to implement 10,000-baht digital wallet scheme to boost Thai economy next year because a projection that Thai economy is likely to have crisis in April next year.

Prime Minister's Secretary General Prommin Lertsuridej said the government vowed to implement a 10,000-baht digital wallet scheme to boost the economy because a projection that Thai economy is likely to have crisis in April next year because downward trend of economic figures.

He said the recovering of Thai economy after the outbreak Covid 19 was too slowest in Southeast Asai, as well as among emerging market & developing economies, and the world.

According to data of the Bank of Thailand and the National Economic and Social Development Council (NESDC) showed that household debt to GDP accounted 91.7% in March this year, ranked the seventh rank of the world which reflected fragility among less income earners and less capability of Thai people to generate income.

Capacity utilization rate is downward trend of 62.8 in 2022, and recorded 63.8 in the first quarter, down to 57.7 and 58 in the second and the third quarter this year.

Private consumption index also was downward trend of 3.3% in the first quarter this year, down to 1.4% in the second quarter and 0.5% in the third quarter. A contraction to 0.5% in August and September.

Private investment index was a downward trend of 1.6%, 1.4% in the first and the second quarter, a contraction by 1.1% in the third quarter. A contraction of 1.9%, 1.2% in August and September

He said a fiscal budget 2024 is projected to be implemented in May, delayed from normally schedule in October 1, 2023 caused the government’s disbursement for investment will be delayed.

The survey of the BoT showed a slowdown trend of business sentiment index in October and next three months. The survey had 501 respondents, or a response rate of 62.7% from a sample of large and medium-size firms that received the survey form.

He said according to the projection of the International Monetary Fund (IMF) the implementing 10,000-baht digital wallet scheme is projected to generate additional 1-1.5 % of an economic growth if the spending among the participants total 500 billion baht in the first six month of 2024.

Mr Prommin said the scheme are expected to boost Thai economy to grow average 5% annually within four years which could reduce public debt to GDP to account 61-62% to GDP next four years, equal to currently rate because the scheme can boost average 5% of the economic growth, even a draft to borrow 500 billion baht is projected to increase additional 3% from currently 61% to meet 64% of the public debt to GDP.

“The government is confident that the draft bill to borrow 500 billion baht to undertake digital wallet scheme will be approved by the parliament while the government is without a reserved plan to boost the Thai economy.”