Many are looking at universal income as a solution to economic woes brought on by job losses and rising inflation. Thailand is stepping into this conversation with an exciting new plan.
In April, Prime Minister Srettha Thavisin surprised many with a proposal to distribute digital money to lower-income citizens. This ambitious program aims to stimulate the economy and is set to start in August.
As Fast Company reports, Srettha Thavisin was born in Bangkok into a wealthy family, he pursued economics at the University of Massachusetts and later earned an MBA from Claremont Graduate University.
Before entering politics, Srettha co-founded Sansiri, a major real estate company in Thailand, where he served as CEO.
In August 2023, Srettha took office as prime minister despite having no prior government experience. His political rise was significantly influenced by Thaksin Shinawatra, a former prime minister.
Thaksin’s support and collaboration with the military helped Srettha secure his position.
Srettha’s tenure began with some controversy, as critics accused him of enabling tax evasion through his business practices. He has consistently denied these allegations.
One of his notable promises includes the digital wallet program, aimed at modernizing Thailand’s financial systems.
What are the program’s details?
Key Points:
- Eligibility: Must earn below 840,000 baht per year.
- Savings Limit: Should not have more than 500,000 baht in savings.
- Amount: 10,000 baht per person.
- Beneficiaries: Expected to support 50 million people.
- Spending Rules: Money must be spent in the recipient’s district within 6 months.
Important Dates:
- Registration: Begins August 1.
- Program Start: Effective in October.
The program targets Thai citizens with annual incomes below 840,000 baht (approximately $23,000) and savings not exceeding 500,000 baht (roughly $13,700).
Each eligible individual will receive 10,000 baht ($275) to spend at local businesses. This initiative aims to boost the Thai economy post-pandemic.
What Does It Hope to Accomplish?
This program aims to lift Thailand’s economy by increasing spending and investing. By addressing high household debt and interest rates, it hopes to encourage more borrowing. This could lead to more spending and investment among the public.
Key Goals
- Boost GDP: Officials predict the program will raise Thailand’s gross domestic product (GDP) by 1.2 to 1.6 percentage points. This compares favorably to the 1.5% GDP growth estimated by the World Bank for December 2023.
- Stimulus and Spending: The program seeks to create an economic stimulus that will drive both local businesses and online purchases. It aims to benefit consumers, farmers, and local businesses across various districts.
- Financial Support: A significant part of the funds will come from the state’s Bank for Agriculture and Agricultural Cooperatives. The project will cover parts of the 2024 and 2025 fiscal budgets, amounting to 500 billion baht, or about $13.7 billion.
- Beneficiaries: The initiative targets individuals over the age of 16 years, providing options like cash handouts to help buy goods and services.
Transparency and Management
The Finance Ministry and the Finance Minister are committed to managing these funds transparently. They aim to ensure the money is spent effectively to deliver tangible benefits to the public.
Long-term Vision
While some critics call the program a temporary fix, supporters believe it will set the stage for sustained economic growth. The coalition government is betting big on this policy to create lasting changes in the Thai economy.
