Speaking after a meeting of the committee on economic stimulus measures, Finance Minister Pichai Chunhavajira said the government has reviewed the spending plan for B157 billion and agreed that adjustments are necessary, reports the Bangkok Post.
The third phase of the digital wallet project, expected to cost B27bn, was to be given to 2.7 million young people aged 16 to 20. Critics have argued the funds might be better used elsewhere, citing the limited economic impact of the first two phases.
Mr Pichai said the National Economic and Social Development Council and the Bank of Thailand earlier proposed reviewing the handout scheme, so the meeting did so and decided to spend the funds elsewhere, particularly on pressing issues.
“These issues are already in the plan, but we will look at the urgent problems, including those facing small- and medium-sized enterprises. We’ll focus on increasing competitiveness and employment.
“The committee has approved the framework with a panel tasked with screening projects and another committee to monitor the spending,” said Mr Pichai, who is also a deputy prime minister.
Last week, the finance minister confirmed the B10,000 handout programme was under review as the government must reconsider its priorities following the new US trade policy.
Mr Pichai yesterday (May 19) denied reports that there were insufficient funds to finance the digital wallet scheme, saying the circumstances had changed and adjustments must be made accordingly.
“The digital wallet programme has been delayed until the right circumstances,” he said when asked about speculation that the government was waiting for the right time to scrap the scheme.
Before the meeting, Prime Minister Paetongtarn Shinawatra said the government must reassess its spending plan following the US’s new trade tariffs and refocus its economic strategies. She said that the country needed to reform its economic structure, strengthen the grass-roots economy, especially SMEs, and aim for long-term sustainable economic growth.
A source at Government House said the committee considered economic trends and reports prepared by economic agencies when assessing stimulus measures and the framework. It was expected to focus on investment, which was deemed more effective in driving the economy.
The committee also considered the prime minister’s instructions and concerns on May 6. These included impacts from the US tariff hike, Moody’s recent downgrade of Thailand’s credit outlook from stable to negative, and possible decreases in revenue collection.
Meanwhile, Minister to the Prime Minister’s Office Chousak Sirinil responded to questions about the legal consequences of halting the third phase of the B10,000 digital wallet handout scheme.
Mr Chousak said that if the project is delayed or paused, it would not pose any legal issues for the government, which included the handout scheme in the policy statement announced before parliament.
Regarding legal concerns and not fulfilling promises to the public, he said that similar situations were handled through parliamentary debate in the past.
In this case, he insisted that the government had already carried out many projects and said delays did not mean that the project was abandoned.
Digital Economy and Society Minister Prasert Jantararuangtong yesterday declined to comment whether the digital payment system would be ready for phase three.
He urged the media to contact the Ministry of Finance for a clearer answer, saying the system is already in place, but the ministry makes the final decision. On whether the project might possibly be cancelled, he said that no such discussion has taken place so far.