The initiative is designed to uplift the nation’s GDP by an estimated 0.4 to 0.5 percentage points, as part of the government’s broader economic revitalisation efforts.
Prime Minister Srettha Thavisin reaffirmed the administration’s commitment to boosting domestic demand through enhanced financial circulation. With Thailand’s economy registering modest growth of just 1.9% in 2023—significantly trailing regional peers—the government has set a target of 2.5% growth in 2025.
At the heart of this recovery strategy lies the much-debated 500 billion baht ($13.9 billion) “digital wallet” initiative, which promises to deliver 10,000 baht to 50 million Thais for use on local purchases over a six-month period. While initially slated for earlier implementation, fiscal considerations have deferred the program’s rollout to Q4 2025.
Despite criticism from economists and former central bank leaders citing potential fiscal strain, government officials assert the plan is both vital and financially sustainable. The initiative has received preliminary clearance from an inter-agency panel—including the central bank—which endorsed the use of the 2024 and 2025 national budgets to finance the program.
To improve fiscal prudence, some committee members have proposed narrowing the eligibility to focus on low-income households—an adjustment currently under review.
This stimulus package marks a pivotal step in Thailand’s strategic shift toward inclusive and proactive economic governance, as the nation navigates global uncertainties and domestic growth challenges.
