The 10,000-baht digital wallet handout was projected to cost around 560 billion baht, according to the original estimate. Analysts are expressing concerns over Thailand's fiscal position, saying figures are likely to deteriorate in the medium term as the government pushes through populist policies such as the digital wallet scheme. "Thailand's fiscal position will come under pressure in the medium term, as we think the Pheu Thai government will implement expansionary populist spending to reach its growth target of 5.0%," said the London-based research company. Policymakers have already announced several measures that will be detrimental to Thailand's fiscal position. Maybank Securities said the watered-down digital wallet scheme and delayed implementation would relieve the near-term strain on Thailand's fiscal balances, "at a time when credit rating agencies are voicing concerns about the country's public debt levels".

Source: Bangkok Post November 04, 2023 11:19 UTC