Thailand’s Prime Minister Paetongtarn Shinawatra has announced a bold plan to boost the country’s economy, allocating 450 billion baht (about $13 billion) to the public. This is the new government’s attempt to revive Thailand’s struggling economy, especially after the negative impacts of the Covid-19 pandemic and the decline in tourism, the country’s main source of income.
The plan promises to benefit about 50 million Thais, each receiving 10,000 baht ($280) in two forms: e-wallet and cash. This is an adjustment from the Pheu Thai Party’s election campaign promise, which only mentioned distributing money via e-wallet to encourage local spending.
Ms. Paetongtarn, 38, has just taken office and is in the process of forming a new government. She hopes that this cash handout program will not only increase people’s purchasing power but also stimulate local economic activities, thereby creating a new growth cycle for the country. The implementation of this plan is also an important test of Ms. Shinawatra’s reputation and leadership ability.
However, not everyone is on board with the plan. Economists have expressed concerns about the feasibility and long-term impact of pumping cash into the economy without effective management measures. They warn that, if not managed carefully, the plan could lead to inflation and increase public debt, putting Thailand in even more difficult financial situations in the future.
On the other hand, the opposition also criticized the plan as a move to consolidate the power of the Pheu Thai Party, rather than a real solution to the country’s fundamental economic problems. In addition, the controversy over Ms. Paetongtarn’s personal assets and business activities also added pressure on the new government.
With Thailand facing a number of challenges, from economic downturn to political instability, implementing this massive cash handout program will be a major test for the Paetongtarn government. The international community and the Thai people are watching the new government’s next steps to see whether this plan can truly bring about a sustainable recovery and development for the country.