Thailand's new cabinet to expedite controversial subsidy

By AJU PRESS Posted : September 10, 2024, 14:13 Updated : September 10, 2024, 14:13
Thailands Prime Minister Paetongtarn Shinawatra speaks during a press conference in Bangkok Thailand September 7 2024 REUTERS-Yonhap
Thailand's Prime Minister Paetongtarn Shinawatra speaks during a press conference in Bangkok on Sept. 7, 2024. REUTERS-Yonhap
SEOUL, September 10 (AJP) - Thailand's government has decided to fast-track the distribution of a 10,000 baht (approximately $300) subsidy to eligible citizens, starting later this month. Deputy Finance Minister Julapun Amornvivat announced the accelerated timeline, citing the need for short-term economic stimulus and support for vulnerable groups.

The subsidy, a key election promise of the ruling Pheu Thai Party, has faced strong opposition from various quarters. Critics, including economists and the Bank of Thailand, have labeled it as populist policy, expressing concerns over fiscal burden and potential inflation. Despite the controversy, the government plans to proceed with payments to Thai citizens aged 16 and above, with monthly incomes under 70,000 baht and bank balances below 500,000 baht.

The program's implementation was initially uncertain following Prime Minister Srettha Thavisin's removal by a Constitutional Court decision. However, former Prime Minister Thaksin Shinawatra, father of the current Prime Minister Paetongtarn Shinawatra, recently indicated that the government was considering disbursing funds to 14.5 million people in September, with the remainder potentially receiving payments in October.

Prime Minister Paetongtarn Shinawatra, who took the oath of allegiance on Sept. 7, has prioritized economic recovery, pledging to address household debt issues, support small and medium-sized enterprises, and stimulate the economy. This comes as Thailand grapples with sluggish growth, having recorded a GDP growth rate of just 1.9 percent last year due to the severe impact of the COVID-19 pandemic on its tourism sector.
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