Thailand to Begin Distributing $4.2 Billion Handout Scheme This Month, According to Reuters

BANGKOK (Reuters) – Thailand plans to distribute 145 billion baht (approximately $4.2 billion) from its “digital wallet” handout program sooner than initially planned in order to support vulnerable populations, according to a deputy finance minister on Monday. The official emphasized the need for immediate economic stimulus.

During a budget debate in the Senate, Julapun Amornvivat stated that the government has allocated a total of 450 billion baht (around $13.29 billion) for this prominent handout initiative, which aims to boost economic activity by providing 10,000 baht to 50 million Thais for local spending.

Originally set to begin in the final quarter of this year, this initiative plays a crucial role in efforts to revitalize Thailand’s economy, which experienced a growth rate of 2.3% in the second quarter.

However, following a recent change in government due to the court’s unexpected ousting of Srettha Thavisin as prime minister, there is now uncertainty regarding the timing of the promised stimulus measures.

According to Paetongtarn Shinawatra, Srettha’s ally and successor, a portion of the handout will now be dispensed in cash.

Julapun indicated that 32 million individuals, including vulnerable groups, have registered for the program so far, although those without smartphones are excluded from receiving the funds due to the application-based nature of the initiative.

It remains unclear whether the initial payments, set to occur later in September and financed through the 2024 budget and other sources, will be issued in cash.

These comments follow Paetongtarn’s commitment over the weekend to immediately stimulate the economy and continue Srettha’s policy direction. Her new government released a policy statement that will be presented to parliament later this week.

The handout scheme has faced criticism from economists, including two former central bank governors, who argue that it is fiscally irresponsible. While the government counters these claims, it has encountered challenges in securing funding sources.

The government maintains that this policy is essential to invigorate the economy, which the central bank anticipates will grow only 2.6% this year, a rise from 1.9% in 2023 but still lagging behind most of its regional counterparts.