Scheme may benefit local market: PM
PUBLISHED: 18 Jun 2024 at 05: 31
Julapun Amornvivat, deputy finance minister, is urging the Commerce Ministry to reconsider its decision, arguing that the move wo n’t help the country’s economy. The payouts will be made available to recipients of the 10, 000-baht payout through the digital wallet scheme.
Since the majority of mobile devices are either produced worldwide or contain parts produced abroad, Mr. Julapun said Prime Minister Srettha Thavisin is concerned about the selection.
Allowing beneficiaries to spend the money on imported goods like cellular phones runs the risk of undermining the scheme’s purpose, which is to encourage local saving and increase the domestic economy, he said.
The issue was discussed at a conference between the Finance and Commerce departments and other state firms, according to Mr. Julapun, who is the chairman of the committee overseeing the online cash plan.
The minister claimed that Mr. Srettha demanded that the Commerce Ministry rethink its decision, arguing that allowing people to use mobile phones may lead to the flow of cash abroad.
The Pheu Thai Party-led state has a major focus on the electric pocket initiative.
The plan is being implemented in an effort to revive the sluggish economy by dispensing 10, 000 ringgit in online currency to anyone who is at least 16 years old and has a monthly income of no more than 840, 000.
The program is anticipated to cost the state about 500 billion ringgit.
The funds deficit for the 2024 fiscal year will be increased by 112 billion baht, according to a request made by the government, in an effort to ensure that there is enough money to pay for the project.
With the additional cost of funding the system, the funds for the 2024 fiscal year will be 3.48 trillion ringgit, a 13.1 % increase from the 2023 funds, which still is in line with the president’s medium- term financial plan, advocates of the program say.