Government to deliberate on the next phase of financial aid distribution.
Gearing Up for the Next Round of Government's Cash Aid
The third installment of the Thai government's 10,000-baht handout is set to hit the cabinet meeting's agenda next week, heading for release between May and June, as confirmed by Deputy Finance Minister Julapun Amornvivat.
"We're sticking to the initial schedule, everything's all set, and no tweaks have been made," he shared on Tuesday.
The third phase of this scheme was approved in March as part of an expanded economic stimulus package. Aimed at 2.7 million young individuals aged between 16 and 20, they'll be receiving the financial aid directly into their digital wallets.
Previous phases saw the scheme's financial support extended to welfare cardholders, persons with disabilities, and senior citizens aged 60 and above, with cash disbursements conducted via PromptPay.
Julapun's update also covered seamless integration between financial institutions and government agencies on the technical system.
Amidst the preparations, the cash aid program has been under the microscope. Numerous economists have expressed reservations about its effectiveness in stimulating meaningful consumption like initially hoped.
In a recent move, a collection of political critics submitted a petition to the National Anti-Corruption Commission, calling for an investigation into the 35 billion baht reallocated from the 2025 fiscal budget. The petition alleges that the funds, initially reserved for debt repayment, have now been rerouted to finance the cash aid, allegedly violating budgetary regulations.
However, Julapun reaffirmed the lawful budgetary procedures, emphasizing that different budget categories for debt repayment and interest remain distinct.
"As a member of the 2025 budget committee, the approval process was fair and clean," he confirmed.
The petitioners' right to seek clarification's been recognized, with Julapun reassuring that they will await the Constitutional Court's verdict.
Addressing broader economic concerns after the World Bank slashed Thailand's GDP growth forecast to 1.6% from 2.6%, Julapun attributed this to the influence of US trade and tariff policies. Due to continuing negotiations, the broader impact of these trade dynamics on various economies is yet to be fully reflected, he added.
"Forecasts still hold some unknowns, as the tariff negotiations' outcomes aren't finalized yet," he said.
A revised assessment of GDP estimates will be conducted post-conclusion of the negotiations. The Fiscal Policy Office is expected to announce updated economic projections soon.
"Our key worry is the impact of global trade imbalances on multiple economies," Julapun noted.
While this cash aid program has faced criticisms for its efficacy and adverse economic impact, Julapun confirmed that it remains on schedule. Controversies surrounding the program's budgetary regulations are under investigation, with its petitioners awaiting the Constitutional Court's decision.
- The third installment of the Thai government's cash aid, totaling 10,000 baht, is scheduled for release between May and June, and will be distributed to eligible cardholders through the PromptPay system.
- The third phase of the government's cash aid scheme, approved in March, will extend financial support to 2.7 million young individuals aged between 16 and 20, in addition to welfare cardholders, persons with disabilities, and senior citizens.
- The cash aid program has been under scrutiny, with numerous economists questioning its effectiveness in stimulating consumption, as well as political critics petitioning the National Anti-Corruption Commission to investigate the reallocation of 35 billion baht from the 2025 fiscal budget.
- Julapun, the Deputy Finance Minister, defended the lawful budgetary procedures, emphasizing that different budget categories for debt repayment and interest remain distinct, while also acknowledging the broader economic concerns related to global trade imbalances and their impact on multiple economies.
