THAILAND’S 500 billion baht (S$18.4 billion) scheme aims to reach the wider population and boost the overall economy through stimulus, a finance official said on Wednesday (Apr 24), responding to central bank recommendations it be targeted towards the poor.

The central bank confirmed to Reuters it had sent a letter to Cabinet with its recommendations on the digital wallet policy, following a request from the government to provide feedback.

The Bank of Thailand had earlier on Wednesday told a press conference it had no objection to stimulus but wanted it to be targeted.

The policy received Cabinet approval on Tuesday, clearing another hurdle for the government to roll out the stimulus plan, which would give 10,000 baht to each of 50 million Thais to spend in their communities in a six month period.

Paopoom Rojanasakul, secretary to the finance minister, on Wednesday told reporters the policy sought to reach the broader population, not only vulnerable sectors.

The digital wallet, rollout of which has been delayed until the end of this year, has been widely criticised by economists and some former central bank governors as fiscally irresponsible.

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The government has insisted it will not negatively affect finances.

The prime minister says the handout is necessary to breathe life into an economy in “crisis”, a depiction the central bank governor has disagreed with. REUTERS