Thailand’s Prime Minister Paetongtarn Shinawatra announced that a portion of the government’s 450 billion baht (US$13.1 billion) “digital wallet” handout will be distributed in cash, marking a shift in the flagship policy.
The scheme, initially intended to transfer 10,000 baht in digital credits to 50 million citizens for use within their localities, is undergoing final adjustments, with details to be disclosed in an upcoming parliamentary policy statement.
The amount of the budget to be distributed as cash remains unclear, and Reuters reported that attempts to reach a deputy finance minister for further details were unsuccessful.
This development comes just two weeks after Paetongtarn, 38, was chosen as Thailand’s youngest prime minister, following the removal of her predecessor, Srettha Thavisin, who was a key proponent of the digital wallet initiative.
The digital handout, a central part of the ruling Pheu Thai Party’s election platform, aims to stimulate the Thai economy, which grew by 2.3% in the second quarter of this year, lagging behind its regional counterparts.
However, the handout has faced criticism from economists and former central bank governors, who argue it is fiscally irresponsible.
The government has delayed the programme due to funding concerns but insists it will adhere to fiscal discipline when implemented in the final quarter of the year.
Paetongtarn, the third member of the Shinawatra family to hold the position following her father Thaksin and her aunt Yingluck Shinawatra. is continuing to push forward with the initiative.
Former Prime Minister Thaksin Shinawatra, in a recent speech, supported the inclusion of cash payments, emphasizing their importance for vulnerable groups.
Featured image credit: Edited from Freepik
