Thailand Launches First Phase of Controversial $14 Billion Stimulus Handout

Thailand has begun rolling out its ambitious $14 billion stimulus scheme, distributing cash handouts to millions of citizens despite facing criticism from economists regarding its financial implications. The first phase of the program, launched on Wednesday, targets 14.5 million welfare card holders and individuals with disabilities, providing each with 10,000 baht in cash.

Prime Minister Paetongtarn Shinawatra expressed confidence that the program would boost economic activity. “This cash infusion will create a wave of spending and revitalize the Thai economy,” she stated at the program’s launch event.

The initiative, initially envisioned as a “digital wallet” scheme utilizing a smartphone app for distribution and encouraging local spending, has faced hurdles in securing funding and has been restructured to begin with direct cash handouts.

“We remain committed to the digital wallet concept and will implement it in future phases,” Paetongtarn assured. “This is just the beginning of our comprehensive stimulus efforts.”

However, the program has drawn criticism from prominent economists, including former central bank governors, who have labelled it as fiscally irresponsible. They argue that the scale of the stimulus is excessive and could lead to long-term economic imbalances.

The Thai government maintains that the stimulus is necessary to boost economic growth, which is lagging behind regional peers. Southeast Asia’s second-largest economy is projected to grow by a modest 2.6% this year, trailing behind neighboring nations.

Key Takeaways:

• Thailand has initiated the first phase of its $14 billion stimulus program, distributing cash to millions of welfare recipients and disabled individuals.
• The program, originally conceived as a digital wallet scheme, has faced funding challenges and has been restructured to begin with cash handouts.
• Economists have criticized the program as fiscally irresponsible, but the government maintains it is necessary to boost economic growth.

This ambitious stimulus program highlights the Thai government’s efforts to stimulate its economy and address concerns about lagging growth. The success of the program and its long-term impact on Thailand’s fiscal health remain to be seen, with economists closely monitoring its implementation and effectiveness.