BANGKOK — After the government announced that it would focus on boosting the economy and dealing with the flood disaster before debating amendments to the current constitution, the Pheu Thai Party, which leads the government, has backed away from its proposal to amend the constitution article by article.
Previously, the party had proposed amendments to the articles on political ethics to draw clear boundaries and prevent them from being used as a political weapon. However, when other coalition parties, particularly the Bhumjaithai Party, the second largest party in the government led by Anutin Charnvirakul, put up strong resistance, Pheu Thai immediately halted its move.
This coincides with the launch of an economic stimulus program, a detail mentioned by former Prime Minister Thaksin Shinawatra in August.
On September 25, 2024, Prime Minister Paetongtarn Shinawatra presided over the kick-off event for the disbursement of the 2024 stimulus program by welfare card holders and people with disabilities. The event was attended by the Cabinet and relevant authorities.
This economic stimulus program has shifted its approach from the digital wallet project, which is still not operational, to direct transfers to the bank accounts of needy groups. In the first phase, 14.5 million people will receive money, including 12.40 million welfare card holders and 2.15 million people with disabilities, who will receive 10,000 baht ($305) each.
The government has set the transfer dates for September 25-30, with the funds being transferred by the Comptroller General’s Department through the PromptPay system, which is linked to national ID numbers.
On the first day, funds will be transferred to the accounts of 2.1 million people with disabilities and welfare recipients whose National ID ends in 0 on 26 September. Subsequent transfers will be based on the last digit of the national ID from 1 to 9.
The Prime Minister said that the Thai economy has been sluggish due to both domestic and international factors. The global economy is recovering more slowly than usual, and there are also problems with geopolitical conflicts and environmental crises that have intensified. This can be seen in the severe flooding in Thailand this year, which is one of the worst in the country’s history.
These factors are the main reasons for the sluggish economy and lack of investment. It is obvious that money has been taken out of circulation. Now the money in circulation is scarce, so investment and the establishment of new industries in Thailand are becoming rarer. The most affected groups are vulnerable, low-income populations, including people with disabilities.
The policies pursued by Prime Minister Srettha Thavisin’s government over the past year to date have focused heavily on economic issues. However, many policies will take months or even years to implement and require political stability to ensure continuity and ensure that development reaches the people. These are the government’s challenges that need to be turned into opportunities for the people.
Measures that have already been implemented include debt relief for farmers and the promotion of tourism through visa-free travel. Although the number of tourists has increased noticeably, it has not yet boosted the overall economy. A large-scale economic recovery is therefore needed today.
“The economy is now being boosted with over 145.552 billion baht ($4.450 billion), creating a significant economic whirlwind for the first time, creating opportunities in the overall economy and providing relief to struggling small citizens,” the Prime Minister said.
Julapun Amornvivat, Deputy Minister of Finance, added that the first day of money transfers went smoothly. If the first phase of the project is completed within the 450 billion baht ($13.8 billion) budget, he believes that the Thai economy will easily recover to its potential level.
However, he added, “We do not accept that Thailand’s economic potential is only growing at about 2% per year. We want to see the Thai economy grow at its potential rate of 5% per year. We need to expand our potential ceiling through various mechanisms, such as developing labor skills and restructuring industries, which must be done in parallel.”
As for the digital wallet project, the Prime Minister confirmed that the government will continue the scheme to boost the economy and lay the foundation for a digital economy for the Thai people.
The aim is to provide citizens with a digital ID that connects the government and citizens and makes transactions with the authorities more convenient, transparent and verifiable. This system is being developed.
The digital wallet project has been criticized by members of the opposition parties, particularly with regard to the source of funding and execution. During a by-election campaign in Phitsanulok province, Pita Limjaroenrat, former chairman of the Move Forward Party, attacked the government’s digital project, claiming that it had become an analog system.
Sirikanya Tansakul, Deputy Leader of the Thai Sang Thai Party, also expressed doubt about whether the digital wallet project, which has been postponed several times already, will be indefinitely delayed.
_____
