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Thai gov't redirects budget to new economic stimulus plan

The Finance Ministry will propose new measures to stimulate the economy and mitigate the impact of the US’ reciprocal tariff measures, which are expected to affect domestic businesses over the next one to two years.

Bangkok (VNA) - The Thai government has decided to scrap its plan to distribute 10,000 THB (230 USD) via the digital wallet programme, and will instead reallocate more than 150 billion THB towards a new economic stimulus plan.

This decision comes amid escalating global economic uncertainties caused by trade tensions and the recent imposition of US tariff measures, which have affected the global economy as well as Thailand’s exports and manufacturing sectors.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira stated that the Economic Stimulus Policy Committee, chaired by Prime Minister Paetongtarn Shinawatra, will meet at the Government House on May 19.

The Finance Ministry will propose new measures to stimulate the economy and mitigate the impact of the US’ reciprocal tariff measures, which are expected to affect domestic businesses over the next one to two years.

The most affected sectors include exporters, supply chain businesses and manufacturers facing an influx of cheap foreign goods.

Pichai said that despite the challenges, the government remains committed to achieving GDP growth of over 3% in 2025. Additional stimulus measures will be introduced, with a focus on tourism and real estate, to prevent potential risks in these sectors.

A source from the Government House revealed that the economic uncertainty expected in the second half of 2025 has prompted a complete overhaul of the stimulus plan.

The government will now repurpose 157 billion THB from the central emergency and contingency budget to fund more targeted and timely economic initiatives.

The new plan will be structured as a package focused on addressing the impact of US tariff hikes. It will prioritise production restructuring and liquidity support for affected businesses.

As a result, the government has decided to cancel the 10,000-THB digital wallet handout for 2.7 million young people aged 16 to 20, previously budgeted at 27 billion THB, and redirect the funds to more suitable projects./.

VNA
#Thailand #digital wallet programme #new economic stimulus plan
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