• Thailand's government, led by Prime Minister Paetongtarn Shinawatra, has initiated a $14 billion stimulus handout scheme.
• The scheme, known as the "digital wallet," will benefit an estimated 45 million people, each receiving 10,000 baht.
• Despite criticism, the government maintains the scheme is necessary to stimulate the economy, which is projected to grow by 2.6% this year.
• The world will be watching closely to see the impact of this ambitious project on Thailand's economy.

In a bold move to stimulate economic activity, the government of Thailand, under new Prime Minister Paetongtarn Shinawatra, has initiated the first phase of a $14 billion stimulus handout scheme. This ambitious project is expected to benefit an estimated 45 million people, each receiving 10,000 baht.

The initial phase of the scheme, which commenced on Wednesday, will see 14.5 million welfare card holders and disabled individuals receive 10,000 baht in cash. The government aims to complete this phase by the end of the month, injecting a significant amount of money into the economy.

The Digital Wallet Scheme

Prime Minister Paetongtarn Shinawatra, speaking at an event marking the start of the program, expressed optimism about the impact of the scheme. "Cash will be put into the hands of Thais and create a tornado of spending," she said.

This statement underscores the government's belief that the scheme will stimulate economic activity and help the country recover from the economic downturn. The scheme, dubbed the digital wallet, was initially structured to distribute funds through a smartphone app.

The recipients are expected to spend the money within their local communities within six months. There will be more stimulus measures, and we will move forward with the digital wallet policy, Paetongtarn added, indicating the government's commitment to digital solutions and further economic stimulus measures.

Criticism and Economic Outlook

However, the scheme has not been without its critics. Some economists, including two former central bank governors, have labeled the scheme as fiscally irresponsible. They argue that the government has not adequately identified sources of funding for the scheme. Despite these criticisms, the government has defended the scheme, maintaining that it is a necessary measure to stimulate the economy.

Thailand, Southeast Asia's second-largest economy, is projected to grow by 2.6% this year, following an expansion of 1.9% last year. This growth rate, while positive, lags behind that of its regional peers. The stimulus handout scheme is part of the government's strategy to boost economic growth and improve the country's economic standing in the region.

The implementation of such a large-scale stimulus package is not unprecedented. In the wake of the 2008 global financial crisis, many countries, including the United States and the United Kingdom, implemented similar measures to stimulate their economies.

These measures included cash handouts, tax cuts, and increased government spending. While the effectiveness of these measures is still debated among economists, they did provide short-term relief for many individuals and businesses.