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Thailand's government will maintain fiscal discipline and forge ahead with its digital wallet stimulus policy, a deputy finance minister said on Monday, amid concerns from dozens of experts about its viability and efficiency.
The policy, which will involve about $15 billion in total, disbursed as 10,000 baht ($269.61) to the digital wallets of 56 million Thais, is central to the new government's effort to stimulate the sluggish economy, Southeast Asia's second largest.
Julapun Amornvivat said the policy was important for the public, domestic spending and jobs, and would be financed by the fiscal budget.
"We are moving ahead with the policy and will adhere to financial discipline, but we are listening to opposing views," Julapun told reporters.
The plan has faced mounting criticism. Two former central bank chiefs have joined academics and economics professors in urging the government to scrap the plan, saying it risks fuelling inflation and hurting fiscal discipline and stability.
The economy was in recovery and there was no need for large spending to boost domestic consumption, they in a joint statement, and boosting domestic spending may lead to higher inflation.
"The plan is not worth it and will do more harm than good," said the statement, for which signatories included former Bank of Thailand Governors Veerathai Santiprabhob and Tarisa Watanagase.
The government's limited money should be used for investment in projects like infrastructure, human development, digital infrastructure and water management to create long-term growth potential, it said.
Critics of the plan say the costs are greater than the benefits and would normalise handouts as a means to encourage people to spend short term, without considering discipline and long-term fiscal stability. (Reporting by Chayut Setboonsarng and Orathai SriringEditing by Kanupriya Kapoor)