Thai citizens to receive cash in $13.8B stimulus scheme

The scheme, which would see about 50 million Thais receive THB10,000 ($276) each to spend locally within six months, is slated to start in the fourth quarter but the government has struggled to find funding sources.

The size of the programme has not been scaled down but was expected to use about THB450 billion in total, based on the previous uptake of about 90% for similar stimulus programmes, deputy minister Julapun Amornvivat told reporters.

He was discussing the scheme after a meeting of a special committee chaired by Prime Minister Srettha Thavisin, at which the central bank was also represented.

“The meeting approved the source of funds… from the 2024 and 2025 budgets, which will be sufficient,” he said, adding the government would not use capital from a state-owned bank as was earlier planned.

The funding plan should be submitted to cabinet next week, Julapun added.

The “digital wallet” stimulus programme is aimed at kick-starting Southeast Asia’s second-largest economy, which expanded just 1.9% last year and has been lagging regional peers.

On Monday, Srettha said registration for the 50 million eligible Thais and participating stores would start on Aug. 1.

It has taken time to ensure legal and technical matters, Srettha said on X social media, adding “people won’t wait in vain”.

The stimulus plan was the ruling Pheu Thai Party’s flagship policy in the 2023 election. Many economists and two former central bank governors have criticised it as fiscally irresponsible, which the government rejects.