The distribution of the digital wallet handout may first target individuals who need it most to boost spending and stimulate the economy towards the end of this year, according to caretaker Deputy Finance Minister Paopoom Rojanasakul.
Mr. Paopoom stated that the scheme will be discussed within the new cabinet. However, there may be adjustments to the distribution model for the initiative, potentially prioritizing high-need groups through the state welfare card system.
“We may consider prioritizing those who are most in need of funding, adjusting the requirements to fit current circumstances,” Mr. Paopoom noted.
He emphasized that any actions that can stimulate economic activity will take precedence.
Distributing funds via the state welfare card can be done promptly, as cardholders would not need to re-register, given that the government already possesses their information.
Regarding the suggestion to combat income inequality through a negative income tax (NIT), Mr. Paopoom acknowledged it as a positive concept for redistributing funds and decreasing social inequality.
As for the potential cancellation of the state welfare card if the NIT system is implemented, he clarified that the two issues are separate and should be considered independently.
Pornchai Thiraveja, director-general of the Fiscal Policy Office, explained that the criteria for income eligibility for the state welfare card are determined by the public welfare fund committee, which oversees grassroots economic and social welfare and can adjust the eligibility criteria as needed.
To qualify for the state welfare card, an individual’s annual income must not exceed 100,000 baht, based on a minimum daily wage of 300 baht.
Excluding weekends, a minimum wage worker’s average annual income would be around 90,000 baht.
Cardholders earning less than 30,000 baht annually, as defined by the poverty line established by the National Economic and Social Development Council, receive 300 baht monthly through the card, while those with an income between 30,000 and 100,000 baht receive 200 baht per month.
Mr. Pornchai noted that the current factors used to determine income eligibility for the state welfare card now differ from those in previous years due to the minimum wage exceeding 300 baht.
