Thai Prime Minister Srettha Thavisin has announced that the economy is facing challenges and needs a boost from a proposed handout scheme worth 500 billion baht ($13.7 billion). The scheme, known as the “digital wallet” plan, would involve transferring 10,000 baht ($275) to 50 million Thais to be spent within six months. However, concerns about the funding for this scheme have arisen, with some experts questioning its fiscal responsibility.
The government has decided to delay the distribution of funds until the fourth quarter of the year, pushing back from the initial timeline of May. Srettha revealed that the finance ministry and the Budget Bureau have been tasked with exploring potential funding sources for the scheme, in addition to considering a borrowing bill. He emphasized the importance of boosting the economy, which has experienced low growth over the past decade.
Despite approval of the budget for the 2024 fiscal year in recent days, challenges remain in seeking a borrowing bill to finance the handout program. The current economic situation has been labeled a crisis by Srettha, requiring urgent stimulus measures. However, Central Bank Governor has expressed a different viewpoint, acknowledging slower-than-expected growth and structural issues in the economy.
With unexpectedly contracting in Q4 2023 and full-year growth at 1.9%, below than expected growth rate of 2.5% in 2022; state planning agency revised its outlook for Q1 2024 growth ranging from 2.
