Thailand will postpone its cash distribution scheme and redirect the remaining budget of 157 billion baht ($4.75 billion) towards investment in water management, infrastructure, logistics, and micro-business loans, Finance Minister Pichai Chunhavajira announced on Monday.
This decision was made following a meeting of the economic stimulus committee, and coincides with the state planning agency lowering its growth forecast for the year to between 1.3% and 2.3%, down from the previously estimated range of 2.3% to 3.3%. This revision is largely due to U.S. tariffs endangering Thailand’s export-driven economy.
Earlier in the day, the National Economic and Social Development Council revealed that in the first quarter of 2025, Thailand’s economy grew by 3.1% on an annual basis, exceeding expectations. However, the nation is at risk of facing a 36% U.S. tariff unless a reduction is successfully negotiated before the current moratorium ends in July.
During this moratorium, the U.S. applies a 10% tariff for most countries. Thailand has already submitted a trade proposal in an attempt to avoid the steep tariffs.
As part of its recovery efforts post-pandemic, the government had launched a 450 billion baht “digital wallet” initiative to inject cash into the economy by distributing 10,000 baht to roughly 45 million citizens. To date, about a third of the intended funds have been disbursed, benefiting 14.5 million welfare cardholders, individuals with disabilities, and an additional four million senior citizens.
The subsequent phase of this initiative will encounter delays, according to the Finance Minister, who noted an anticipated sharp economic slowdown in the latter half of the year. While he mentioned that governmental actions could bolster economic growth by 0.7 to 1.0 percentage points, he did not specify a timeline for these outcomes.
