Economy Cash Handout Pause Shock: Phase III Delayed Indefinitely

[webfact]

Picture courtesy of THai PBS World

 

In a surprising turn of events, Thailand's Finance Minister Pichai Chunhavajira announced today that the much-anticipated phase three of the cash handout scheme is postponed indefinitely.

 

Despite the delay, the Minister reassured the public that the scheme would resume once conditions improve. The primary reason cited for the postponement is the looming economic challenges, including the threat of steep tariffs on Thai exports to the US, which could climb as high as 36%.

 

This tax increase could hit Thai businesses hard, especially the small and medium enterprises (SMEs) that are already in need of government assistance. The delay affects 2.7 million Thais, aged between 16 to 60, who were expecting a financial boost of 10,000 baht each.

 

The government aimed to bolster the economy through these handouts, but tight financial constraints have pushed the plans aside for now.

 

To counterbalance the halting of cash distribution, Pichai shared that the Economic Stimulation Board held a meeting to reassess their current financial strategies.

 

They discussed redirecting an estimated 157 billion baht from the Central Fund into more immediate projects, focusing on water management, public transport, and improvement of public facilities aimed at boosting tourism, alongside educational promotions.

 

While the cash handout scheme is on hold, the government implores financial institutions to issue more soft loans, equipped with low-interest rates, to aid struggling SMEs. This move intends to prevent a dramatic dip in GDP growth, keeping it above the critical 1% threshold.

 

Looking ahead, Pichai indicated that the government would leverage parliamentary procedures to scrutinise spending and investments for the next fiscal years, placing priority on enhancing the production sector, logistics, and water management.

 

Despite the indefinite pause of the cash handout scheme, actions are still being taken to support the economy in other essential areas. The focus remains squarely on safeguarding businesses and ensuring sustainable growth during these challenging times.

 

  Adapted by ASEAN Now from Thai PBS World 2025-05-20

 

 

 

[JoePai]

Well there's a surprise     🤣

[Upnotover]

3 hours ago, webfact said:

In a surprising turn of events, Thailand's Finance Minister Pichai Chunhavajira announced today that the much-anticipated phase three of the cash handout scheme is postponed indefinitely.

Yes, that is a surprise.  On Friday it was "cancelled".