Thailand will begin the distribution of 145 billion baht from its “digital wallet” handout program to help vulnerable groups, according to a statement from a deputy finance minister on Monday, highlighting the urgency of short-term economic incentives.
During a budget debate in the Senate, Julapun Amornvivat noted that the government has allocated a total of 450 billion baht for this key handout program, which aims to boost economic activity by transferring 10,000 baht to 50 million Thais for spending within their communities.
This initiative, initially planned to launch in the final quarter of the year, is fundamental to Thailand’s strategy to revitalize the economy of Southeast Asia’s second-largest nation, which reported growth of 2.3% in the second quarter.
Recent political shifts, including last month’s court-ordered removal of Srettha Thavisin as premier, have cast doubt on the timing of these anticipated economic measures.
A portion of the handouts will now be given in cash, Paetongtarn Shinawatra, an ally and successor to Mr. Srettha, announced last week.
Finance official Julapun revealed that 32 million individuals have registered for the program so far, including those from vulnerable groups; however, it excludes those without smartphones, who were supposed to receive the funds through an app.
There remains uncertainty whether the first set of payments, which Julapun mentioned would occur later in September from the 2024 budget and other sources, will be in cash.
These comments followed a weekend announcement by Ms. Paetongtarn, the daughter of politically influential billionaire Thaksin Shinawatra, pledging immediate economic stimulation and continuation of Mr. Srettha’s policies.
Her administration issued a policy statement on Sunday, which Ms. Paetongtarn is slated to present to parliament later this week.
Despite criticism from economists, including two former central bank governors who labeled the handout scheme as fiscally reckless, the government defends the program and struggles to secure funding sources.
The government maintains that the policy is vital for stimulating economic growth, which the central bank projects to be only 2.6% this year, an increase from last year’s 1.9% but still lagging behind many regional counterparts.
