Thailand to speed up 145 billion baht digital wallet handout

Thailand will advance the distribution of 145 billion baht from its digital wallet handout programme to support vulnerable groups, announced by the deputy finance minister yesterday. The decision aims to provide immediate economic stimulus in the short term.

During a budget debate in the senate, Julapun Amornvivat revealed that the government has allocated 450 billion baht for this flagship handout programme. The initiative is designed to boost economic activity by transferring 10,000 baht to 50 million Thai citizens for local spending.

Scheduled initially for the last quarter of the year, this measure is central to Thailand’s strategy to revitalise Southeast Asia’s second-largest economy, which saw a growth of 2.3% in the second quarter. However, a recent change in government following the unexpected removal of Srettha Thavisin as premier by the court has created uncertainty regarding the launch of promised stimulus measures.

Prime Minister Paetongtarn Shinawatra, an ally of Srettha and his successor, stated last week that part of the handout would now be distributed in cash.

Finance official Julapun mentioned that 32 million people have registered for the programme so far, including vulnerable groups. However, those without smartphones, through which the funds were initially intended to be received via an application, are not included.

It remains unclear if the first tranche of payments, expected to be issued later this month from the 2024 budget and other sources, will be in cash. Julapun’s comments come after Paetongtarn, the daughter of politically influential billionaire Thaksin Shinawatra, pledged to stimulate the economy immediately and adhere to Srettha’s policy agenda.

“We are committed to implementing this programme to energise the economy, despite the criticisms.”

Paetongtarn’s new government released a policy statement on Sunday, which the PM will present to Parliament later this week.

Economists, including two former central bank governors, have criticised the handout scheme as fiscally irresponsible. The government, however, rejects this criticism, though it has faced challenges in securing funding sources.

The administration maintains that the policy is essential to invigorate the economy, which the central bank projects will grow by 2.6% this year, up from 1.9% in 2023, but still lagging behind most regional peers, reported Bangkok Post.