BANGKOK — The government’s economic development committee has decided to postpone phase 3 of the digital wallet program, which was supposed to distribute 10,000 baht to young people. The Ministry of Finance insists that the program has not been canceled, only postponed until the economic climate improves.
On May 19, Prime Minister Paetongtarn Shinawatra stated before the second 2025 meeting of the National Economic Stimulus Policy Committee at Government House that the current global economic situation is volatile due to trade wars and the announcement of Reciprocal Tariff policies by major powers. The government therefore needs to review its plans and projects, including accelerating economic structural improvements.
She emphasized the importance of fostering long-term economic growth, strengthening the grassroots economy and SME entrepreneurs, in order to drive the economy in line with the current economic situation.
After the meeting, Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced that the government will postpone Phase 3 of the digital wallet program until conditions are better.
“When the situation improves, we can consider it again. It’s a direct economic stimulus, but right now we want to prioritize job creation, so we’re adapting to the current circumstances,” he said.
Review the $4.75 Billion Stimulus Budget
Pichai explained that the government is reviewing the 157 billion baht ($4.75 billion) stimulus budget and will clearly prioritize urgent structural issues. The National Economic and Social Development Council (NESDC) and the Bank of Thailand have urged a rethink of the digital wallet program, suggesting that funds be redirected to tackle structural challenges such as access to water for consumption and agriculture.
Other priorities include transport infrastructure such as high-speed and double-track railroad lines and road networks and tourism. Priority is given to projects that are classified as urgent. This also includes projects aimed at solving short-term problems for SMEs and promoting competitiveness and employment.
“The board has today approved a framework, with a sub-committee to scrutinize the proposed projects and a team to oversee the budget disbursement,” the finance minister said.
When asked whether the delay was due to insufficient funds, Pichai replied in the negative: “No, the budget has already been allocated. But the situation has changed and there are more restrictions now, so we have to adjust the spending plan. It’s not that we don’t have enough money or that we want to gain time.”
Changes of the Digital Wallet Project
The Pheu Thai Party’s flagship digital wallet project, a key promise from the 2023 election, aimed to stimulate the economy by distributing 10,000 baht to individuals aged 16 and older, injecting 450 billion baht ($13.6 billion).
While it became official policy, the initial one-time handout was divided into phases, prompting criticism from opposition parties who questioned its reduced economic impact and fiscal prudence. The government defends the initiative as crucial for revitalizing an economy struggling after a decade of military and authoritarian rule.
Phases 1 and 2 involved direct cash transfers to groups with limited access to digital technology. Phase 1 targeted approximately 14.4 million state welfare or disability card holders who received 10,000 baht each between September 25 and December 19, 2024, at a total cost of 144.5 billion baht.
In phase 2, funds were paid out to around 3 million elderly citizens (aged 60 and over) who had registered via the government app “Tang Rat” (State Platform). The transfers were made between January 27 and April 28, 2025 with a budget of 30 billion baht.
Phase 3 was intended for young people aged 16–20, with an estimated 2.7 million recipients eligible. The original plan was to pay out by June 2025 at the latest. It was to be the first fully digital phase, with funds being transferred via banking apps. The government reasoned that younger people are more tech-savvy and adaptable.
However, following the announcement of tariff increases by US President Donald Trump, which will affect key trading partners including Thailand, the Thai government has signaled that it may have to suspend the project.
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