Thailand Launches $14 Billion Stimulus Scheme

BANGKOK (Reuters) – Thailand’s government on Wednesday launched the first phase of its flagship $14 billion stimulus handout scheme, which will eventually see an estimated 45 million people receive 10,000 baht each, aiming to spark economic activity.

The initial phase will distribute 10,000 baht in cash to 14.5 million welfare card holders and disabled people, expected to wrap up by the end of the month.

“Cash will be put into the hands of Thais and create a tornado of spending,” said Prime Minister Paetongtarn Shinawatra at an event marking the programme’s start.

The “digital wallet” scheme was designed to distribute funds via a smartphone app, encouraging local spending within six months.

Paetongtarn stated, “There will be more stimulus measures, and we will continue with the digital wallet policy.” However, the scheme faces criticism from economists, including two former central bank governors, who label it fiscally irresponsible. The government disputes these claims but has faced challenges in securing funding.

Southeast Asia’s second-largest economy is projected to grow 2.6% this year after a 1.9% expansion, lagging behind regional peers.

($1 = 32.61 baht)