Thailand’s Prime Minister, Paetongtarn Shinawatra, disclosed on Tuesday that a portion of the government’s highly-touted 450 billion baht ($13.1 billion) “digital wallet” stimulus package will now be disbursed in cash, marking a shift in its flagship populist initiative.
The exact distribution details are still being finalized and are set to be revealed in a forthcoming policy declaration to parliament.
Previously, the digital wallet initiative, aimed to revitalize an economy that has trailed regional peers, involved transferring 10,000 baht ($292) in credit to 50 million Thai citizens through a mobile application for local expenditures over a six-month period.
The specific allocation of funds to be distributed in cash remains uncertain at this time, as a deputy finance minister was unavailable for immediate comment.
Paetongtarn, aged 38, made these statements following her recent appointment as Thailand’s youngest prime minister, succeeding Srettha Thavisin, a strong advocate of the policy who was ousted from office by court order.
A new government is slated to be established by mid-September, with a finalized cabinet lineup pending public disclosure.
Although Thailand’s economy expanded by 2.3% in the second quarter of the year, analysts have expressed concerns about fiscal policy uncertainties affecting future growth projections. The central bank has forecasted a 2.6% economic growth for this year, following a 1.9% growth in the previous year.
Meanwhile, economists and former central bank governors have disapproved of the cash handout program, citing fiscal irresponsibility.
The government had postponed the initiative due to funding challenges but plans to implement it in the final quarter. Despite criticisms, government officials have affirmed their commitment to maintaining fiscal prudence.
Paetongtarn, the daughter of the prominent former Prime Minister Thaksin Shinawatra, has received endorsement for the digital wallet initiative from her father, who emphasized the advantages of integrating a cash element into the handout program to aid vulnerable populations.
