The Thai government’s proposal to finance a 500 billion THB (approximately 14.3 billion USD) cash handout through special borrowing legislation has received approval from its legal adviser, marking a significant milestone for Prime Minister Srettha Thavisin’s contentious stimulus program.
Deputy Finance Minister Julapun Amornvivat announced on January 8 that the Council of State has endorsed the government’s authority to enact the borrowing bill for the cash stimulus initiative. The plan, centered around a digital wallet scheme, aims to distribute 10,000 THB to around 50 million Thais aged 16 and above, commencing in May 2024, with the goal of propelling growth in Southeast Asia’s second-largest economy.
Julapun further revealed that a committee assigned to oversee the cash handout program will convene shortly to discuss the draft bill and establish the timeline for cash distribution. Despite this green light, potential legal challenges to the digital wallet plan could arise from opposition to the handout. The decision to borrow funds for the program has sparked criticism, including objections from Thailand’s opposition parties, some former central bankers, and economists who fear that it might widen the fiscal deficit and trigger inflation.
The Prime Minister’s objective is to boost Thailand’s annual growth, which has trailed behind neighboring countries, averaging below 2% over the past decade. Srettha’s 3.48 trillion THB budget plan for the fiscal year through September 30, 2024, secured initial approval from the House of Representatives, signaling a commitment to advancing the economic agenda.
