Thailand to Disburse $4.2 Billion Early to Support Vulnerable Groups
Thailand is set to accelerate the distribution of its “digital wallet” handout scheme, rolling out the first 145 billion baht (approximately US$4.2 billion) earlier than planned. This decision, announced on September 9 by Deputy Finance Minister Julapun Amornvivat, aims to provide immediate economic relief and support to vulnerable groups amid ongoing economic challenges.
Details of the Handout Program
The handout program, initially scheduled for the last quarter of the year, will now commence sooner. The government has allocated a total of 450 billion baht (US$13.29 billion) for this initiative. The plan involves distributing 10,000 baht to 50 million Thais to be spent locally, with the goal of stimulating economic activity and boosting local spending.
Economic Context and Political Impact
This program is a critical component of Thailand’s strategy to invigorate its economy, which grew at a modest rate of 2.3 percent in the second quarter. The decision to expedite the handout follows a period of political instability, including the unexpected removal of former Prime Minister Srettha Thavisin by a court ruling. This political shift has created uncertainty about the timing and implementation of promised economic stimulus measures.
New Prime Minister Paetongtarn Shinawatra, a close ally of Srettha, has pledged to continue with the stimulus plan. Her government has also committed to delivering a policy statement to parliament later this week.
Payment Details and Public Reaction
As of now, 32 million people have registered for the program. The initial payments, set to begin in September, will be made from the 2024 budget and potentially other sources. It remains unclear whether these payments will be disbursed in cash or through the digital wallet system.
The handout scheme has faced criticism from economists, including two former central bank governors, who argue that it is fiscally irresponsible. Despite this, the government maintains that the policy is essential to stimulate economic growth, which the central bank projects will rise to 2.6 percent this year, up from 1.9 percent in 2023 but still below regional averages.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
