Thailand initiated the first phase of its major $14 billion (THB 473 million) economic stimulus initiative on Wednesday, which aims to provide a cash handout to approximately 45 million individuals to boost economic activity.
The plan involves giving 10,000 baht to each recipient, with the first phase focusing on distributing funds to 14.5 million welfare cardholders and individuals with disabilities. The distribution of the first phase is projected to be completed by the end of the current month.
Initially designed as a “digital wallet” system, the scheme was intended to utilize a smartphone application for fund allocation, with the expectation that the money would be spent within local communities over a six-month period.
Prime Minister Paetongtarn Shinawatra affirmed the government’s commitment to implementing further stimulus measures and advancing the digital wallet strategy despite facing criticism from economists, including former central bank governors, who have deemed the scheme financially irresponsible. However, the government has defended the initiative and has encountered challenges in securing funding sources.
Thailand’s economy, the second-largest in Southeast Asia, is forecasted to achieve a growth rate of 2.6% this year, following a 1.9% expansion in the previous year, positioning it behind regional counterparts in terms of economic performance.
