Prime Minister Paetongtarn Shinawatra appeared to face some conflicting ideas with her deputy finance minister yesterday, following rumors that the government intends to halve its 10,000-baht cash handout scheme during its second phase next year. Despite the circulating gossip that financial constraints might force the payout down to just 5,000 baht per eligible person, Ms. Paetongtarn assured the media that participants would receive the full sum as initially planned.
“People will definitely receive all the money,” she affirmed, adding that responsible agencies would provide more details after the cabinet meeting on Tuesday. Sirikanya Tansakul, an MP from the main opposition People’s Party, mentioned that while her party favored the scheme aimed at aiding vulnerable groups first, she doubted it would have the sweeping impact the government claimed, dismissing the idea of it creating an economic “whirlwind.”
Initially, the handout was planned for 45 million recipients but was later scaled down to just 14.5 million people and segmented into several phases. The government also projected that the digital wallet app necessary for the scheme would be ready by the first quarter of 2025, with an initial distribution of 5,000 baht next year and the remainder to follow in 2026 due to budgetary constraints.
Deputy Finance Minister Julapun Amornvivat disclosed that the government is deliberating on the plan to balance the use of the central budget for other economic stimulus campaigns as well. He noted a key concern: registration data revealed about 10 million duplicate entries, slashing the potential number of recipients to 26 million people in the second phase. Despite the reduction in eligible participants, Mr. Julapun confirmed the government’s commitment to the digital money handout project but alluded to a possible reduction to 5,000 baht in the second tranche.
Moving forward with the second phase will necessitate a detailed clarification from the next Economic Stimulus Policy Committee meeting, chaired by Ms. Paetongtarn, though a date for this has not yet been scheduled, Mr. Julapun mentioned. Whether the final distribution amount remains at 10,000 baht or is adjusted to 5,000 baht will depend on multiple factors, he noted.
“If the discrepancies in our calculations are minimal, we can manage the budget to roll out the scheme as planned,” he said. “But if we encounter substantial deviations, such as a 100-billion-baht budget shortfall, we would need to utilize the central budget and possibly distribute the funds over multiple phases.”
The initial plan was to allocate 450 billion baht to ensure 45 million people aged 16 and above received the handout. The government anticipated this would stimulate economic growth by up to 5% this year, up from a forecasted 2%.
“Now that the money has reached the hands of vulnerable groups, I hope they will have the opportunity to enhance their lives with it. This is an economic stimulus, which should boost GDP by 0.35% this year,” Mr. Julapun remarked.
This handout scheme sounds like a desperate attempt to win votes rather than a genuine economic plan.
It’s about time the government puts money back in the hands of the people. This is what stimulus is all about.
Stimulus? It’s a band-aid solution to a much deeper economic problem. The government should focus on creating jobs, not just handing out cash.
Jobs take time to create. People need help now, and this handout provides immediate relief.
How is giving out money without a clear economic strategy supposed to help in the long term? Look at Venezuela!
Why are we even debating this? The full payout was promised, and it should be delivered without all this back and forth.
What about the 10 million duplicate entries? How did that even happen? Seems like incompetence to me.
The government should have a better system in place to prevent such errors. This is tax money we’re talking about.
This scheme is a joke. They keep trimming the number of recipients and the payout. What’s next, just cancel it altogether?
They should have just started smaller and manageable instead of promising the moon.
The app isn’t even going to be ready until next year. How are people supposed to get their money?
Building a secure digital wallet app takes time, especially when it’s going to handle billions of baht. Rushing it would be disastrous.
Economic stimulus should involve targeted investments, not blanket handouts. This approach lacks depth.
True, but targeted investments don’t provide immediate relief to families in need. We need both approaches.
Balancing short-term relief and long-term growth is challenging, but leaning too much on handouts risks inflation and dependency.
The reductions in eligible participants and payout amounts just make this whole plan lose credibility.
This is another example of populist policies that don’t consider fiscal sustainability.
Fiscal sustainability is important, but we can’t ignore the immediate needs of the vulnerable. It’s a tough balance.
Why don’t they use the budget for creating small-scale enterprises? That would offer long-term benefits.
Small-scale enterprises are great but require a lot of initial investment and time before showing results. Immediate cash can help now.
I feel betrayed. They keep changing the rules. Why should we trust the government anymore?
Absolutely, the inconsistency is frustrating and erodes public trust.
Governments change policies based on evolving circumstances. It’s not always betrayal; sometimes it’s adaptation.
At least they’re trying to address the economic issues, unlike the previous administration. Give them some credit.
True, they are trying. But how effective is this approach going to be in the long run?
Why is there no date yet for the Economic Stimulus Policy Committee meeting? They need to hurry up!
Maybe they’re waiting to see how the numbers play out before committing. Better late than rushed and wrong.
This scheme might give us a temporary GDP boost, but at what long-term cost? Debt and inflation?
Exactly! The short-term gains are a facade. We need to be looking at sustainable solutions.
I’m so tired of these politicians making empty promises. Why can’t they just stick to one plan and execute it?
The projections are optimistic at best. We need more transparency on where this money is coming from and how it will be managed.
Yeah, transparency is key. Without it, people won’t have confidence in any of these schemes.