Thailand’s government has secured initial approval for an additional 122 billion baht ($3.4 billion) budget to fund its “digital wallet” stimulus program. This program aims to jumpstart the country’s struggling economy, which grew only 1.9% last year. The budget passed its first reading in parliament with 297 votes in favor and 164 against, due to the Pheu Thai Party’s majority in the House of Representatives. The program involves distributing 10,000 baht to 50 million Thais, a total of 500 billion baht ($13.9 billion).
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However, the program has been met with criticism from economists and opposition lawmakers, who argue it is fiscally risky and the funds could be better used elsewhere. They question the effectiveness of the handout scheme. The central bank has also expressed concerns about the program’s design and recommended a more targeted approach focusing on the poor. The budget still requires two more readings in the lower house, followed by senate and royal approval. This vote comes amidst a potential dismissal of Prime Minister Srettha due to a Constitutional Court case related to a cabinet appointment.