Thailand's new PM Paetongtarn Shinawatra to outline policies to parliament

Thailand's new PM Paetongtarn Shinawatra unveils $13.4 billion stimulus plan to boost economy, facing criticism and support.

Thailand's Prime Minister Paetongtarn Shinawatra will on Thursday (September 12, 2024) deliver her government's policy proposal to parliament, headlined by plans to give away 450 billion baht ($13.4 billion) in handouts to jumpstart growth.

Political newcomer Ms. Paetongtarn's cabinet was sworn in earlier this month after she won the backing of parliament to become Thailand's youngest premier following the shock removal of predecessor Srettha Thavisin by a court decision. The policies largely continue to ally with Mr. Srettha's agenda and that of their populist Pheu Thai party, including debt restructuring and legalising casinos to draw in investment and more tourists.

The government is expected to give details of its signature plan for its 'digital wallet' handout of 10,000 baht ($300) to 50 million people, some of which Ms. Paetongtarn now says will be given in cash.

The scheme has been criticised by economists and former central bank governors as fiscally irresponsible, which the government rejects. It has struggled to find sources of funding. It insists the policy is necessary to energise the economy, which the central bank expects to grow just 2.6% this year, up from 1.9% in 2023 but far adrift of most regional peers.

Ms. Paetongtarn, 38, is making her debut appearance in parliament as Thailand's second female prime minister. She is the fourth member of her family to hold the top job.

Among those was her father, the billionaire Thaksin Shinawatra, Thailand's most influential and divisive politician over the past two decades, who has backed the stimulus plan and is a key figure behind her Pheu Thai party.

($1 = 33.7900 baht)