Thailand’s $13 Billion Digital Handout Scheme to Include Cash Payments, Says PM

By Panarat Thepgumpanat

BANGKOK – Thailand’s Prime Minister Paetongtarn Shinawatra has announced that a portion of the government’s highly discussed 450 billion baht ($13.1 billion) "digital wallet" initiative will be given out in cash, marking another shift in its flagship populist policy.

Final details are still being worked out and will be presented in a forthcoming policy statement to parliament, she noted.

Initially, the digital wallet plan was designed to provide 10,000 baht ($292) in credit to 50 million Thai citizens through a smartphone app, intended for spending in their local areas within six months.

It remains unclear how much of the allocated funds will be disbursed in cash. Attempts to reach a deputy finance minister for comment were unsuccessful.

Paetongtarn’s remarks come shortly after she was selected as Thailand’s youngest prime minister by parliament, following the removal of her predecessor, Srettha Thavisin, a strong proponent of the policy, by a court ruling.

A new government is expected to take shape by mid-September, with a cabinet list already prepared but yet to be revealed.

The stimulus program, which is a key component of the ruling Pheu Thai Party’s election platform, aims to invigorate an economy that has been lagging compared to other regional nations. Thailand’s economy grew by 2.3% in the April-June quarter, although analysts have expressed concerns over fiscal policy uncertainty impacting future prospects.

The central bank has projected an economic growth of 2.6% for this year, following last year’s modest expansion of 1.9%.

However, some economists and former central bank governors have criticized the handout scheme as financially irresponsible, resulting in delays due to funding challenges. The program is slated to launch in the final quarter of the year.

Government officials have assured that the plan will comply with fiscal discipline.

Paetongtarn, aged 38, is the daughter of former Prime Minister Thaksin Shinawatra, who remains an influential figure in Thailand’s political landscape.

In a speech to top executives last month, Thaksin endorsed the digital wallet initiative and previously suggested that distributing part of the handout in cash could greatly benefit vulnerable populations.