Thailand is set to distribute 145 billion baht (US$4.2 billion) from its “digital wallet” handout program earlier than initially planned, aiming to support vulnerable groups and provide short-term economic stimulus. This announcement was made by Deputy Finance Minister Julapun Amornvivat on Monday, September 9.

During a budget debate in the Senate, Julapun highlighted that the government has allocated a total of 450 billion baht (US$13.29 billion) for this flagship handout initiative. The program is designed to boost economic activity by transferring 10,000 baht to 50 million Thai citizens for local spending.

Originally scheduled for the last quarter of this year, the handout scheme is a key component of Thailand’s strategy to revitalize Southeast Asia’s second-largest economy, which saw a growth of 2.3% in the second quarter.

The recent change in government, following the unexpected removal of Srettha Thavisin as premier by the court, has created uncertainty about the timing of the promised stimulus measures. However, Paetongtarn Shinawatra, Srettha’s ally and successor, confirmed last week that part of the handout will now be distributed in cash.

Julapun noted that 32 million people, including vulnerable groups, have registered for the program so far. However, those without smartphones, who were supposed to receive funds via an application, are not included in this count. It remains unclear whether the first tranche of payments, expected later in September and sourced from the 2024 budget and other funds, will be in cash.

Paetongtarn, the daughter of influential billionaire Thaksin Shinawatra, recently assured that the new government would immediately stimulate the economy and adhere to Srettha’s policy agenda. Her administration published a policy statement on Sunday, which she will present to parliament later this week.

Despite criticism from economists, including two former central bank governors, who deem the handout scheme fiscally irresponsible, the government maintains that the policy is essential to invigorate the economy. The central bank projects a modest growth of 2.6% this year, up from 1.9% in 2023, but still lagging behind most regional peers.

Source: CNA