Prime Minister Paetongtarn Shinawatra outlined her government’s policy agenda to parliament, headlined by plans to give away 450 billion baht (RM87.8bil) in handouts to jumpstart South-East Asia’s second-largest economy.
Political newcomer Paetongtarn’s Cabinet was sworn in this month, after parliament elected her Thailand’s youngest premier following the shock removal of predecessor Srettha Thavisin by a court decision.
The polices largely continue ally Srettha’s agenda and that of their populist Pheu Thai party, including debt restructuring and legalising casinos to draw in investment and more tourists.
Paetongtarn told parliament her government was facing challenges, including structural economic problems, and said the government would act with urgency to stimulate growth.
Public debt stood at 63.74% of GDP at the end of July.
While she highlighted the signature plan for a “digital wallet” handout of 10,000 baht (RM1,280) to 50 million people, some of which Paetongtarn has previously said will be given in cash, there were no updates on how or when it would be rolled out.
The government had said this week it would distribute 145 billion baht (RM18.6bil) of the programme to support vulnerable groups later this month.
The scheme has been criticised by economists and former central bank governors as fiscally irresponsible, which the government rejects. It has struggled to find sources of funding.
The government insists the policy is necessary to energise the economy, which the central bank expects to grow 2.6% this year, up from 1.9% in 2023 but far adrift of most regional peers. — Reuters
