Thailand's Handout Scheme to Improve Economy by Stimulus

Thailand's 500 billion baht ($13.53 billion) handout scheme aims to stimulate the wider population and bolster the overall economy through stimulus, a finance official said on Wednesday, in response to central bank recommendations suggesting a focus on the poor.

Confirming to Reuters, the central bank revealed it had submitted a letter to the cabinet outlining its recommendations regarding the digital wallet policy, following a government request for feedback. Earlier on Wednesday, during a press conference, the Bank of Thailand expressed no opposition to stimulus but emphasized the importance of targeting it effectively.

Having received cabinet approval on Tuesday, the policy has cleared another hurdle for implementation, offering each of the 50 million Thais 10,000 baht to spend in their communities over a six-month period. Paopoom Rojanasakul, secretary to the finance minister, informed reporters on Wednesday that the policy aimed to benefit the broader population, not solely vulnerable sectors.

Although the rollout of the digital wallet, delayed until the end of this year, has faced criticism from economists and some former central bank governors as fiscally irresponsible, the government maintains it will not adversely impact finances.

While the prime minister insists that the handout is necessary to revive an economy in "crisis," this depiction is not shared by the central bank governor.