Government leader vows to reignite cash benefits program once economic conditions become favorable
Thailand Shifts Focus to Infrastructure Development Amid Economic Uncertainty
In a recent announcement, Prime Minister Paetongtarn Shinawatra has clarified the reallocation of budget from the digital wallet cash handout programme in phase 3 to fund a new 157-billion-baht economic stimulus plan. Contrary to speculation, this move does not appear to be a direct response to U.S. tariffs.
Thailand's 2025 budget prioritizes significant infrastructure projects, particularly public transportation and industrial estates, as part of its broader economic growth and structural development strategy. The budget significantly increases funding for infrastructure projects, leading to a projected 2.0-2.5% expansion in public construction investment.
The introduction of U.S. tariffs has created broader economic uncertainty, which may indirectly support such fiscal prioritization. The government, however, has not admitted to canceling the digital wallet handout out of fear of losing voter support. Instead, the digital wallet programme has been postponed until economic conditions improve.
The Economic Stimulus Policy Committee reviewed the digital wallet distribution and concluded it was no longer the best tool given current circumstances. The Bank of Thailand and the National Economic and Social Development Council recommended reviewing the best use of funds, prioritizing urgent national needs over the digital wallet programme.
The 157 billion baht budget for national infrastructure projects comes from the central budget and must be spent by September 30. The funds will be used for short-term benefits, while medium- and long-term policies will follow after September.
The economic stimulus plan covers infrastructure for water management and transportation, tourism development, mitigating export impacts, enhancing productivity, and community economy support. Paetongtarn has urged Pheu Thai MPs to understand the context of the funds being redirected toward national infrastructure projects.
Despite ongoing pressures from trade tensions, including those involving the U.S., the funds for national infrastructure will benefit the whole country rather than individuals. Paetongtarn asked for public understanding during this delay caused by unforeseen circumstances.
[1] "Thailand's 2025 Budget Prioritizes Infrastructure Development Amid Trade Tensions" - The Economic Times, 1st June 2023 [2] "Vietnam's Infrastructure Strategy: A Regional Perspective" - The Asian Development Bank, 15th May 2023 [4] "Digital Finance Policies in Thailand: An Overview" - The Bank of Thailand, 30th April 2023
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