Thailand is accelerating its ‘digital wallet’ handout program, a key component of its economic stimulus plan, to provide immediate support to vulnerable groups. The government will distribute 145 billion baht ($4.2 billion) earlier than originally scheduled, as announced by Deputy Finance Minister Julapun Amornvivat during a budget debate in the Senate.
This move highlights the urgency to revitalize the Thai economy, which grew only 2.3% in the second quarter of this year. The government has allocated a total of 450 billion baht ($13.29 billion) for the handout program, which involves transferring 10,000 baht to 50 million Thais to encourage spending within their communities. The program was initially slated for rollout in the final quarter of 2023 but has been expedited due to economic concerns.
The decision to accelerate the handout comes after recent political changes in Thailand. Srettha Thavisin, who was recently appointed Prime Minister, was removed by a court, leading to uncertainty about the implementation of the stimulus measures. Paetongtarn Shinawatra, Srettha’s ally and successor, has pledged to prioritize economic recovery and implement Srettha’s policy agenda.
The handout program, which has been criticized by economists as fiscally irresponsible, aims to address the sluggish economic growth experienced by Thailand. The central bank projects a modest 2.6% growth for 2023, significantly lower than other Southeast Asian economies.
The government, while acknowledging the criticism, insists that the program is necessary to energize the economy. While the program initially involved distributing funds through an app, the government has now confirmed that a portion of the first tranche of payments, scheduled for later this month, will be made in cash. This change caters to vulnerable groups, particularly those without access to smartphones, who were initially excluded from the program.
The government’s commitment to jumpstarting the economy through this program, despite economic concerns and criticism, underscores the priority placed on reviving economic growth and supporting vulnerable populations in Thailand.
