Thai cabinet signs off on $3bn in borrowing for digital wallet

PM Srettha launches last-resort bid to fund Pheu Thai's promised handout

With the government losing support, Prime Minister Srettha Thavisin in legal jeopardy and the country's economy only managing to inch forward, the Pheu Thai party has placed all its chips in a controversial digital wallet scheme. (Photo by Hiroki Endo)

FRANCESCA REGALADO, Nikkei staff writer

May 28, 2024 17:47 JST

BANGKOK -- Thai Prime Minister Srettha Thavisin's cabinet on Tuesday approved adding 122 billion baht ($3.3 billion) to the 3.48 trillion baht fiscal budget, to be raised mostly from loans, as it seeks legal ways to finance its flagship digital wallet stimulus.

Additional borrowing of 112 billion baht ($3 billion) will require parliamentary approval, as it would elevate the public debt to just under the legal ceiling of 70% of gross domestic product, economists warned. Currently, Thailand's public debt is 11.47 trillion baht, or 63% of GDP.