Thailand government includes cash options in 10,000-baht handout

The Thailand government’s 10,000-baht handout programme is set for adjustments, with Deputy Finance Minister Julapun Amornvivat acknowledging the need to include cash distributions for some recipients instead of digital money.

Numerous petitions against the government’s flagship policy contributed to this decision, Julapun said yesterday. Additionally, feedback from various sectors has prompted changes to improve the programme’s effectiveness.

Initially, the policy aimed to distribute 10,000 baht in digital money to up to 50 million eligible Thais over the age of 16. However, many economists criticised the 500-billion-baht scheme, suggesting it would not achieve the economic boost anticipated by the Pheu Thai-led government.

The new administration under Paetongtarn Shinawatra is now making necessary adjustments to mitigate the risks highlighted by state organisations, economists, and the opposition, said Julapun.

“I have to admit that some changes are needed, including handing out cash [to vulnerable groups]. As for what the final details will look like, we still have to discuss that further with all the other coalition parties.”

Currently, it seems likely that this month, money will be distributed to approximately 15 million state welfare cardholders in cash. The decision stems from the fact that many intended recipients are unfamiliar with digital technology or do not possess smartphones.

The government will decide on the continuation of handouts to an additional 35 million people when the new fiscal year begins on October 1.

Digital economy

Julapun assured those who have already registered via the government’s Thang Rath app that the digital wallet will continue to operate, regardless of any adjustments.

The programme also aims to establish a new digital economy infrastructure for Thailand, in addition to injecting funds into the economic system.

Julapun refrained from detailing other possible adjustments, indicating that specifics will be disclosed when the new government presents its policy statement in parliament later this month.

The deputy finance minister mentioned that the remaining budget for the digital wallet—122 billion baht from the fiscal 2024 and additional funds from the 2025 budget, currently under review in the Lower House—will be strictly allocated for economic stimulus purposes, reported Bangkok Post.

The expected impact of the stimulus has been a topic of debate, with critics arguing that the benefits would be limited given the high cost. Julapun acknowledged the potential for both positive and negative outcomes from the adjustments.

“Here in Thailand we have so many petitioners whose petitions have become an obstacle to the government in its work to improve the economy and people’s well-being.

“These petitions have also shattered the country’s consumer and investor confidence.”