Thailand’s newly appointed Prime Minister, Paetongtarn Shinawatra, is set to present her government’s policy agenda to parliament on Thursday. The proposal includes a significant allocation of 450 billion baht ($13.4 billion) for stimulus packages aimed at reigniting economic growth.
Following the removal of her predecessor, Srettha Thavisin, through a court ruling, political novice Paetongtarn assumed office after securing parliamentary support, becoming Thailand’s youngest prime minister. The policies put forth largely mirror those of Srettha and their populist Pheu Thai party, encompassing strategies such as debt reorganization and the legalization of casinos to attract investments and boost tourism.
One of the pivotal initiatives of the government is the introduction of a ‘digital wallet’ scheme, which will provide 10,000 baht to 50 million individuals. Paetongtarn has recently announced that a portion of this allocation will be dispensed in cash.
However, this scheme has faced criticisms from economists and former central bank officials citing fiscal irresponsibility. Despite encountering challenges in sourcing funding, the government defends the necessity of this policy to invigorate the economy, which is projected to grow by a modest 2.6% this year according to the central bank, a slight increase from 1.9% in 2023 but lagging behind other economies in the region.
At 38 years old, Paetongtarn will make her inaugural address in parliament as the second female prime minister of Thailand. She belongs to a family legacy, with her billionaire father, Thaksin Shinawatra, being a prominent and controversial political figure in Thailand for the past twenty years. Thaksin has thrown his support behind the stimulus plan and continues to play a pivotal role in the Pheu Thai party.
