Finance Ministry of Thailand to Execute THB 500B Stimulus Package

The Deputy Finance Minister of Thailand has confirmed that the government will proceed with its previously delayed 500 billion baht (US$ 13.82 billion) stimulus package to help the economy, which is currently in a crisis. Julapun Amornvivat, while speaking to the reporters, stated that the economy is struggling due to high interest rates and household debts. Therefore, the government will continue with its stimulus policies to boost its growth.

The stimulus plan, known as the "digital wallet," was a significant election platform of the ruling Pheu Thai party. It proposes to give 10,000 baht (US$ 276) to each of the 50 million Thai citizens to spend within six months. However, the government is facing criticism over concerns regarding how to fund the scheme, with experts calling it financially irresponsible.

A consultative committee, composed of bankers, economists, finance, and budget officials, was scheduled to meet on Thursday to discuss the scheme's implementation. Julapun stated that the committee is unlikely to conclude its decision on the matter. He also added that the government would ensure the program's transparency to avoid any corruption.

The handout is Prime Minister Srettha Thavisin's signature policy, who is also the Finance Minister. He has repeatedly argued that the economy needs a big boost, and the handout program is the answer. However, the program might still be delayed until more consultation is done. Srettha believes that the economy is currently in a crisis and requires short-term stimulus, a view that the central bank disagrees with.