Thailand’s government is set to accelerate the distribution of 145 billion baht (US$4.2 billion) from its much-anticipated “digital wallet” programme earlier than originally planned, as part of a broader effort to provide short-term economic stimulus. The move, aimed at supporting vulnerable groups, was confirmed by Deputy Finance Minister Julapun Amornvivat during a Senate budget debate on Monday.
The digital wallet programme, which will ultimately inject 450 billion baht (US$13.29 billion) into the economy, is a flagship initiative designed to bolster local economic activity by providing 10,000 baht to 50 million citizens. Initially slated for the final quarter of 2024, the scheme is now set for an earlier rollout, with the first tranche expected by the end of September.
This announcement comes as Thailand’s new government, led by Prime Minister Paetongtarn Shinawatra, faces mounting pressure to deliver on promised economic reforms. Prime Minister Paetongtarn, daughter of former premier Thaksin Shinawatra, succeeded Srettha Thavisin after his surprise removal from office last month. In a bid to jumpstart Southeast Asia’s second-largest economy, which grew only 2.3% in Q2 of 2024, Prime Minister Paetongtarn’s administration has vowed to maintain the economic agenda set by her predecessor.
To date, over 32 million Thais have registered for the digital wallet programme, with funds originally planned to be distributed via a smartphone application. However, officials are now considering cash handouts as part of the early distribution plan. The government has yet to clarify how the first payments will be handled, but Julapun mentioned that funds will be drawn from the 2024 budget as well as other financial sources.
Despite its potential to stimulate growth, the handout scheme has drawn criticism from economists, including former central bank governors, who argue that it may strain Thailand’s fiscal stability. The government, however, insists the policy is essential to revitalise an economy forecasted to grow by just 2.6% this year—well behind regional counterparts.
Prime Minister Paetongtarn is expected to present her government’s policy statement in parliament later this week, reinforcing her commitment to delivering immediate economic relief.