This week, Thailand launched a $14 billion economic stimulus program that will give money to tens of millions of the kingdom’s citizens, the Financial Times reports.
The ruling Pheu Thai party, which came to power in August last year, had promised to pay 45 million people a cash allowance of 10,000 baht ($309). However, some politicians and the country’s central bank opposed the program, and the ruling party, together with Prime Minister Pheu Thai Chinawatra, was forced to move to a phased implementation of the program.
As part of the first tranche, the government will allocate money to approximately 14.5 million Thai citizens, including those representing the most vulnerable segments of the population. Initially, the aid was supposed to be transferred through a digital wallet. Still, the authorities sent money directly to the recipients’ bank accounts. A total of 36 million people have registered for the aid.
The government estimates that the program’s first phase alone will boost the country’s economy by 35 basis points this year.
However, economists warn that the program will have a one-time and limited impact and will not help strengthen the economy, which is affected by structural problems and political instability in the country.
In addition, experts doubt that the ruling party and the prime minister will be able to fully implement the program due to tensions with other political elites.