By Panarat Thepgumpanat

BANGKOK (Reuters) – Thailand’s Prime Minister Paetongtarn Shinawatra on Tuesday announced that part of the government’s 450 billion baht ($13.1 billion) “digital wallet” handout will be distributed in cash, marking another change to its flagship populist policy.

Details are still being finalized and will be announced in a policy statement to parliament.

The digital wallet handout was initially set to provide 10,000 baht ($292) in credit to 50 million Thais via a smartphone app, allowing spending in their localities within six months.

It remains unclear how much of the budget for the program will be converted to cash distributions. A deputy finance minister could not be immediately reached for comment.

Paetongtarn, 38, made her comments two weeks after being appointed as Thailand’s youngest prime minister by parliament. She succeeded Srettha Thavisin, the program’s primary advocate, who was removed from office by a court.

A new government is expected to be formed by mid-September, with a cabinet list already finalized but not yet made public.

The stimulus program, which is the ruling Pheu Thai Party’s main election platform, aims to boost an economy that is lagging compared to regional peers.

Southeast Asia’s second-largest economy grew by 2.3% from April to June, but analysts caution that fiscal policy uncertainty clouds the outlook.

The central bank has predicted economic growth of 2.6% for this year, following last year’s 1.9% growth.

Economists and two former central bank governors have criticized the handout program as being fiscally irresponsible, and the government has delayed the scheme due to funding issues. The rollout is expected in the fourth quarter.

Officials have assured that the plan will adhere to fiscal discipline.

Paetongtarn, 38, is the daughter of influential former Prime Minister Thaksin Shinawatra, who remains a significant figure in politics.

In a recent speech to top executives, Thaksin endorsed the digital wallet scheme, asserting that cash allocations would be beneficial for vulnerable groups.

($1 = 34.2600 baht)