BANGKOK (Reuters): Thailand will delay its direct cash handout scheme and use its remaining budget of 157 billion baht (US$4.75 billion) to invest in water management, transport, logistics and soft loans for small businesses instead, Finance Minister Pichai Chunhavajira said on Monday.
The announcement, after a meeting of the economic stimulus committee, comes after the state-planning agency slashed its full-year growth forecast to 1.3% to 2.3% from a previous 2.3% to 3.3% as US tariffs threaten the country's export engine.
The economy grew slightly faster than expected in the first quarter of 2025 at 3.1% annually. Thailand faces a 36% US tariff if a reduction cannot be negotiated with Washington before a moratorium expires in July.
The United States has set a 10% tariff for most nations while the moratorium is in place. Thailand has sent a trade proposal as part of its efforts to avoid the high tariffs.
The government has paid out about a third of its flagship 450 billion baht ($13.3 billion) "digital wallet" scheme, which aims to transfer 10,000 baht ($300) to an estimated 45 million people, to jumpstart an economy that has struggled since the pandemic.
So far it has distributed cash to 14.5 million welfare card holders and disabled people and an additional four million senior citizens.
The next phase will be delayed, Pichai said, adding that the economy will slow sharply in the third and fourth quarter this year.
The government's measures would help growth by 0.7 to 1.0 percentage points, he said, without giving a timeframe.
(Reporting by Orathai Sriring, Kitiphong Thaichareon, Thanadech Staporncharnchai and Chayut Setboonsarng; Editing by John Mair, Alexandra Hudson) - Reuters
