Despite economists' warnings, the Thai PM pushes a $15B handout

In order to stimulate the economy, Thai Prime Minister Srettha Thavisin will move forward with a $15 billion digital money handout plan.

He does this despite economists and business leaders expressing concern about the cost of his most prominent policy.

Srettha told reporters on Sunday that he was paying attention to economists who had expressed reservations about the strategy. Nevertheless, he claimed that millions of people had shown a strong desire for digital currency and that he had to pay attention to their voices in particular.

99 economists from prestigious universities, including former governors of the Bank of Thailand, sent the prime minister a letter last week opposing the idea of distributing digital currency and urging the administration to think again.

In keeping with the global economy, which has been steadily rebounding from the most current COVID-19 pandemic, the Thai economy was reportedly recuperating at its potential growth rate as of the statement from October 6. The government does not currently need to invest a significant amount of money to boost domestic consumption, the statement continued.

Srettha's Pheu Thai Party pledged during the general election campaign in May to distribute 10,000 baht ($275) through digital wallets to all Thais 16 years of age and over in order to encourage spending. The government has not indicated how it will pay for the subsidies, which may cost up to 560 billion baht ($15.4 billion) and cover up to 56 million people nationally.

Sethaput Suthiwartnarueput, the current central bank governor, has voiced concerns since the proposal was floated during the election, saying it is not worth investing a massive amount of money to stimulate the economy.