PM promises to resume cash handout campaign when economy improves

Paetongtarn explains budget reallocation from digital wallet campaign to infrastructure development due to U.S. tariffs

Prime Minister Paetongtarn Shinawatra on Tuesday clarified the Cabinet’s decision to shift the budget originally allocated for the digital wallet cash handout programme in phase 3 to fund a new 157-billion-baht economic stimulus plan.

The plan covers infrastructure for water management and transportation, tourism development, mitigating export impacts and enhancing productivity, community economy support, and more.

The premier said the 10,000-baht cash handout project had already supported vulnerable groups and the elderly in the first two rounds of distribution. However, the introduction of U.S. tariffs has prompted the government to reconsider the next phase of the cash handout.

She pointed out that the Bank of Thailand and the National Economic and Social Development Council recommended reviewing the best use of funds, prioritizing urgent national needs over the digital wallet programme.When asked if the government was reluctant to admit canceling the digital wallet handout due to fear of losing voter support, Paetongtarn replied that no country wants such problems, so the government focused on where the funds could generate the greatest benefit.

“The digital wallet programme was not canceled but postponed until economic conditions improve, when such stimulus would be most effective,” she said.

Paetongtarn explained that the Economic Stimulus Policy Committee reviewed the digital wallet distribution and concluded it was no longer the best tool given current circumstances, especially with the U.S. tariff wall in place. The committee is now exploring the most effective stimulus measures under these new conditions.The PM acknowledged that the Pheu Thai-led government did not anticipate the sudden rise in U.S. tariffs, which could reach 30-40%, a level that also surprised many countries. She urged Pheu Thai MPs to understand this context and explained that the funds are being redirected toward national infrastructure projects, including comprehensive water system improvements, benefiting everyone.

When questioned on how investing in infrastructure would counteract U.S. tariffs, Paetongtarn clarified that the 157 billion baht comes from the central budget and must be spent by September 30. This budget is separate from policies addressing tariffs, which involve negotiations with the U.S. and decisions on further economic stimulus. The 157 billion baht will be used for short-term benefits, while medium- and long-term policies will follow after September.

She added that the funds allocated for national infrastructure will benefit the whole country rather than individuals, while asking for public understanding during this delay caused by unforeseen circumstances.

(2025/05/20-00:00)