Thai Prime Minister proposes $16B cash handout to stimulate economy

Thailand looks to distribute 560 billion baht ($16 billion) to its 55 million adults over the next six months in order to stimulate domestic demand and investment.

Srettha Thavisin, the new Prime Minister, has stated that the revival of a sluggish economy is his government's top priority.

Each Thai citizen over the age of 16 will get 10,000 baht, which they can use to purchase particular goods and services in their neighborhood within a predetermined time frame. Srettha announced in a usual policy statement presented in parliament on Monday that the government would also soon reduce energy rates and provide a debt moratorium to farmers and small enterprises struggling with loan burdens.

According to Prime Minister Srettha, the so-called digital wallet plan will act as a catalyst to reawaken the country's economy, with the handout ensuring equitable distribution of funds across all sectors of the economy.

Some of the proposals made by the premier in parliament are likely to be approved at the first working meeting of Srettha's cabinet on Wednesday.

The main election promise of Srettha's Pheu Thai Party is the rollout of a digital wallet program. According to officials, the multiplier effect on the economy could be four times the handout and raise economic growth next year to as high as 5% from the 2.8% predicted for this year.

The problem facing Srettha, a former real estate magnate who doubles as finance minister, is to spur growth in the face of weakening demand from China, the country's main trading partner, and lower-than-expected revenue from international travelers. As drought conditions threaten to reduce harvests of products like rice and sugar, the 11-party coalition government also has to worry about a spike in inflation.