PM Insists Third Phase of 10,000-Baht Handout Is Still On Amid Economic Pressure

Thai Prime Minister Paetongtarn Shinawatra and a Thai delegation moved through Don Mueang International Airport on Thursday morning, taking a flight to Vietnam for a two-day official visit. The moment captured the ongoing engagement between Thailand and its regional partners as officials weigh the country’s economic toolkit in a time of shifting global trade dynamics.

Prime Minister Paetongtarn Shinawatra has given a clear assurance that the government’s third phase of the 10,000-baht cash handout programme will not be scrapped. This commitment comes as the administration navigates reports that the government might review the third phase of its digital wallet scheme in response to the impact of US tariffs on the Thai economy. The confirmation points to a broader resolve within the leadership to maintain a coherent economic stimulus strategy even as policies are scrutinized for efficiency and alignment with current international trade conditions.

The assurance landed amid remarks from Finance Minister Pichai Chunhavajira on Wednesday, when he stated that all economic stimulus measures, including the 10,000-baht handout, were under review. His comments underscored a government obligation to reassess priorities in light of trade turbulence that has affected economies around the world. Responding to reporters ahead of a meeting of the Economic Stimulus Policy Committee at Government House, Mr. Pichai highlighted the need to adapt policy instruments to the evolving external environment, without signaling immediate termination of planned measures.

The third phase of the handout is projected to cost 27 billion baht. Some critics have argued that the funds could be redirected toward other priorities, citing the perception that the first two phases yielded only marginal economic impact. This tension reflects a broader policy debate about how best to stabilize domestic demand and stimulate growth in a global economy unsettled by tariff disputes and supply-chain disruptions. The cost figure—27 billion baht for the third phase—has become a focal point of discussions about fiscal space, targeting, and the efficiency of cash transfers versus more structural interventions.

Prime Minister Paetongtarn emphasized the government’s obligation to listen to a wider range of opinions as the economic landscape evolves, including the policies and tariff measures emanating from the United States. “More opinions have to be listened to. If we have a final conclusion, we will immediately let you know,” she said before departing for the two-day official visit to Vietnam. The remark underscored a process-oriented approach to policy formation, prioritizing deliberation and consensus in an environment where external factors are continually shifting.

She reiterated that the government remains committed to identifying the most effective means to stimulate the economy, adding that the third phase of the digital wallet remains on the cards. “It has not been cancelled. We are waiting to hear all opinions and trying to push forward in every aspect,” she stated. The message conveyed a balance between maintaining a forward-looking stimulus plan and remaining responsive to a wide range of stakeholder perspectives, including economists, industry leaders, and the public.

The government’s broader strategy involves a multifaceted approach to economic stimulus, recognizing that success depends on the coordinated use of both monetary and fiscal tools. Paetongtarn stressed that stimulus should not be confined to a single demographic cohort. “We need to use both money and policies to stimulate the economy, and not just one age group,” she said. “Under the original plan, we divided (the handout) into age groups. But now, we must look at everything.” This reflection signals a potential expansion of the policy lens beyond age-based targeting toward a more inclusive framework that considers current and prospective economic needs across the population.

In March, the cabinet approved the third phase of the digital wallet programme, planning to distribute 10,000 baht to 2.7 million young people aged 16 to 20 as part of the broader economic stimulus package. The third phase is positioned to complement the first two phases, which already targeted welfare cardholders, people with disabilities, and individuals aged 60 and older. The reformulation for the third phase arrives amid a period of economic recalibration, as policymakers weigh the most efficient ways to channel fiscal support to sustain consumption, safeguard livelihoods, and bolster domestic demand.

Section 1: Prime Ministerial Commitment and the Third Phase Plan

Background and rationale for the third phase

The government’s third phase of the 10,000-baht handout is designed to infuse liquidity into the economy while broadening the reach of support to younger segments of the population, specifically 16 to 20-year-olds, through a digital wallet framework.
The plan to disburse 10,000 baht to 2.7 million people in this age bracket aligns with a broader aim of stimulating consumption, enhancing financial inclusion, and leveraging technology-driven tools to deliver stimulus directly to households.
The third phase is intended to complement existing measures that previously targeted other vulnerable groups, creating a more comprehensive stimulus architecture.

Cost, targeting, and distribution mechanics

The projected cost of the third phase stands at 27 billion baht, reflecting a substantial fiscal commitment to support youth-level consumption and economic activity.
Eligibility for the third phase focuses on young people aged 16 to 20, a group that has historically seen policy attention shift toward education, employment readiness, and social subsidies in an economy facing external headwinds.
The first two phases previously covered welfare cardholders, people with disabilities, and those aged 60 and older, establishing a multi-layered approach to cash assistance and social protection.

Policy dialogue and decision-making process

Prime Minister Paetongtarn’s remarks emphasize the importance of collecting diverse viewpoints and ensuring that final policy decisions are informed by a wide range of opinions.
Finance Minister Pichai Chunhavajira highlighted that all stimulus measures are under review, signaling a deliberate recalibration process that balances immediate relief with longer-term fiscal sustainability amid trade tensions.
The government’s approach underscores a commitment to transparency and responsiveness, with the understanding that external developments—such as US tariff policies—can influence domestic economic strategies.

Timeline and next steps

The government is actively evaluating the third phase within the broader context of global economic changes and domestic fiscal constraints.
While not cancelled, the third phase may be adjusted in scope or delivery based on input from policymakers, economists, and other stakeholders.
The final decision on the third-phase rollout will be communicated in a timely manner to ensure clarity for potential beneficiaries and institutions responsible for implementation.

Implications for the economy and stakeholders

If implemented, the third phase would extend the reach of direct cash support into younger demographics, potentially stimulating consumer demand, supporting small businesses, and encouraging short-term spending in key sectors.
The approach reflects a pragmatic blend of cash transfers and policy measures aimed at a broader population, acknowledging that stimulus effectiveness often depends on targeting, timing, and complementary structural policies.
The interplay between the digital wallet and cash handouts may lead to lasting improvements in digital literacy and financial inclusion among youths, with ripple effects for future economic participation.

Section 2: Economic Context — US Tariffs, Global Trade Turbulence, and Thailand’s Stimulus Strategy

Global trade environment and its impact on Thai policy

The discourse surrounding the third phase of the handout is framed by a shifting global trade landscape, where tariff policies—particularly those associated with the United States—are cited as new factors influencing Thailand’s economic outlook.
Policymakers have argued that international trade turbulence necessitates a careful reconsideration of priorities, as volatility in demand, supply chains, and market access can alter the effectiveness and urgency of domestic stimulus measures.
The broader context involves a delicate balancing act between maintaining robust domestic demand and preserving fiscal sustainability in an environment of uncertain external conditions.

Fiscal considerations and policy coherence

The government’s willingness to review all economic stimulus policies, including the 10,000-baht handout, signals a comprehensive approach to fiscal policy coherence.
The focus on weighing trade-related shocks against domestic needs reflects a recognition that stimulus tools must be adaptable to a volatile external environment, while still preserving social protection commitments.
Fiscal authorities appear to be assessing whether existing instruments—cash handouts, digital-wallet initiatives, and other stimulus measures—remain the most efficient means of supporting growth, or whether reallocations could deliver higher multipliers or broader coverage.

Role of the Economic Stimulus Policy Committee

The economic stimulus policy committee at Government House plays a central role in coordinating policy responses, evaluating effectiveness, and guiding decisions on future interventions.
The committee framework supports an evidence-based approach to policy changes, incorporating input from ministers, economic advisors, and stakeholder consultations to determine the best mix of tools for stabilization and growth.

Phase two and phase one outcomes as a reference point

The first two phases focused on beneficiaries such as welfare cardholders, people with disabilities, and seniors, providing empirical data on uptake, utilization, and potential spillover effects into the economy.
Critics have argued that the early rounds yielded only marginal economic impact, which has shaped the debate around how best to deploy the third phase to maximize impact and cost-effectiveness.
Policymakers are weighing these outcomes against the costs and potential benefits of extending targeted cash transfers, including the 27-billion-baht investment in the third phase.

Trade shocks and sectoral implications

The Thai economy, like many others, is navigating the consequences of trade tensions and tariff policies that can affect export demand, manufacturing costs, and investment sentiment.
In this environment, stimulus policies are expected to support domestic demand while policymakers monitor exchange rates, capital flows, and inflation pressures to maintain macroeconomic stability.
The debate over the digital wallet’s role—whether as a direct cash conduit or as a conduit for broader digital financial inclusion—reflects a nuanced approach to enabling resilient consumption in the face of external stresses.

Strategic alignment and future policy directions

The government’s stated objective is to pursue a balanced mix of monetary and fiscal tools that collectively bolster the economy, protect jobs, and sustain growth without compromising long-term fiscal health.
The willingness to listen to a broad range of opinions underscores a strategic intent to ensure policy relevance and legitimacy, which is especially important when introducing large-scale social programs with significant budgetary implications.
As the policy landscape evolves, the administration may consider alternative or supplementary measures, including targeted support for specific sectors, investment incentives, or complementary social programs, while maintaining the core goal of stimulating domestic demand.

Section 3: Public Dialogue and Critiques — Debates on the Digital Wallet’s Efficacy and Allocation

Public reception of the digital wallet phases

The rollout of multiple phases for the digital wallet and cash handouts has generated a spectrum of public opinions, ranging from broad-based support for direct assistance to concerns about efficiency and long-term impact.
Critics have pointed to perceived gaps in the early phases, calling for a reassessment of how funds are allocated, who benefits most, and whether the program’s design optimizes multipliers in the economy.

Critiques regarding marginal impact

Some stakeholders argue that the initial rounds did not yield robust, durable growth effects, leading to calls for reallocating resources toward initiatives with higher short-term or medium-term effects on employment, productivity, or investment.
Proponents of these criticisms emphasize the importance of targeting precision, the risk of leakage, and the need for complementary policies that translate cash injections into sustained economic activity.

The policy shift toward broader input

The government’s emphasis on listening to more opinions signals a shift toward greater inclusivity in policymaking, recognizing that diverse perspectives can improve design, execution, and acceptance.
This approach may help address concerns about equity and adequacy, ensuring that the program remains responsive to changing economic realities and the needs of different demographic groups.

Implications for trust and legitimacy

Transparent dialogue about policy trade-offs and the evolving design of the digital wallet can reinforce public trust in government decisions, particularly for programs that directly affect household finances.
Clear communications about the rationale behind continuing, refining, or reallocating resources can help manage expectations and build confidence among beneficiaries and the broader economy.

Section 4: Administrative Mechanics — How the Digital Wallet Phases Are Executed

Delivery architecture and beneficiaries

The digital wallet framework is designed to deliver 10,000 baht per eligible participant, with phased distributions that broaden the beneficiary pool across different age groups and protected categories.
Revenue and cash flow management hinge on precise eligibility verification, secure digital wallet accounts, and robust oversight to minimize fraud and misuse while ensuring timely disbursement.

Interaction with existing social programs

The initial two phases already integrated welfare cardholders, people with disabilities, and seniors, aligning cash transfers with established social protection structures.
The third phase, targeting 16 to 20-year-olds, represents a widening of the digital wallet’s reach and an integration of youth-focused stimulus into the broader policy mix.

Implementation challenges and opportunities

Logistical considerations include onboarding new beneficiaries, ensuring accessibility of the digital wallet interface, and safeguarding against errors or delays in payment processing.
The digital wallet can also serve as a platform for promoting financial literacy, encouraging responsible spending, and fostering early engagement with digital financial services.

Public accountability and transparency

The government’s commitment to public disclosures about policy reviews, timelines, and decisions is essential for accountability.
Ongoing communication regarding the status of the third phase, including any changes to scope or timing, helps preserve credibility and investor confidence.

Section 5: Geopolitical and Economic Implications — The Vietnam Visit and Regional Engagement

Context of the two-day official visit to Vietnam

The Thai delegation’s travel to Vietnam for a two-day official engagement highlights the importance of regional diplomacy in supporting economic policy objectives.
Official visits of this kind typically aim to discuss trade ties, investment opportunities, and cooperation on a range of economic and developmental priorities, potentially creating a conducive environment for Thai stimulus measures and macroeconomic stability.

Potential outcomes and avenues of cooperation

While the specific agenda and agreements are not detailed in the provided material, standard outcomes of such visits include the signing of memoranda of understanding, discussions on trade facilitation, and collaborative initiatives in areas such as technology, manufacturing, and logistics.
Strengthened bilateral ties with Vietnam can translate into increased market access for Thai goods, joint ventures, and shared expertise in digital economy initiatives, which could complement domestic stimulus efforts.

Strategic significance for Thailand’s economic policy

Regional engagement complements national policy by expanding economic opportunities and mitigating external vulnerabilities through diversified partnerships.
A more integrated Southeast Asian economic landscape can support Thai growth objectives by expanding export channels, attracting investment, and encouraging knowledge transfer.

Section 6: Fiscal Strategy and the Steering Role of Government Agencies

Umbrella policy coordination

The Economic Stimulus Policy Committee at Government House coordinates the design, evaluation, and adjustment of stimulus initiatives, ensuring alignment with broader fiscal and macroeconomic objectives.
This centralized coordination is essential for harmonizing multiple policy instruments, such as cash handouts, digital wallet programs, tax incentives, and sector-specific support, into a coherent stimulus framework.

Budgetary implications and sustainability

The 27-billion-baht third-phase allocation underscores a substantial fiscal commitment that requires careful management to balance immediate relief with long-term debt considerations and fiscal sustainability.
Policymakers must weigh the potential short-term stimulative effects against the durability of gains and the possibility of crowding out private investment or saving.

Future policy directions and adaptability

Given the evolving economic outlook and external uncertainties, policymakers are likely to maintain flexibility in adjusting the mix and timing of stimulus measures.
The willingness to incorporate broader input suggests a dynamic policy process where adjustments reflect new data, changing trade conditions, and feedback from beneficiaries and stakeholders.

Section 7: Comparative Analysis — Outcomes of Phases One and Two Versus Third-Phase Prospects

Historical context of the first two phases

The initial phases delivered aid to specified groups—welfare cardholders, people with disabilities, and seniors—versus the new emphasis on a younger demographic in the third phase.
Retrospective assessments of the first two phases have raised questions about the depth of their macroeconomic impact, prompting considerations about optimizing the third phase to enhance effectiveness.

Anticipated advantages of the third phase

Targeting 2.7 million youths with a 10,000-baht handout could bolster household spending, support local businesses, and stimulate consumption in areas most likely to be influenced by a digital wallet distribution.
The expansion to younger beneficiaries complements the policy’s inclusive goals, potentially fostering longer-term financial literacy and engagement with formal digital financial services.

Potential risks and mitigations

Risks include fiscal strain if the third phase is not well-calibrated with other policy measures, possible leakage or misallocation, and the challenge of ensuring timely delivery amid administrative complexities.
Mitigation strategies may involve robust beneficiary verification, transparent evaluation mechanisms, and a phased rollout with performance benchmarks to guide subsequent actions.

Section 8: Social Equity and Demographic Considerations — Rethinking Age-Based Targeting

Equity considerations across demographics

The shift from strictly age-based targeting to a broader consideration of all opinions reflects an equity-oriented approach to stimulus design, seeking to address diverse economic needs across the population.
By including younger cohorts alongside existing beneficiaries, the policy aims to reduce gaps in access to economic support and ensure that vulnerable groups are not disproportionately left out.

Policy design implications for inclusion

The reorientation toward inclusive targeting suggests a recognition that different age groups experience distinct economic pressures, requiring a flexible policy toolkit that responds to those nuances.
This approach can foster a more resilient social protection framework by addressing the lived realities of households at various life stages.

Long-term implications for digital literacy and financial inclusion

The digital wallet component has the potential to accelerate digital literacy and broaden access to digital financial services, particularly among younger individuals who may be more adept at navigating online platforms.
Successful implementation could yield spillover benefits, such as improved financial management skills and greater participation in the formal economy.

Section 9: Operational Outlook — Timelines, Execution, and Future Scenarios

Current status and decision timelines

The government is actively evaluating the third phase, with the understanding that the final decision will reflect input from multiple stakeholders and evolving economic indicators.
Transparent communication about timelines and decisions will be critical to maintaining public trust and ensuring smooth implementation.

Possible future scenarios

Scenario A: The third phase proceeds as planned with the 27-billion-baht allocation, broadening support while preserving fiscal discipline.
Scenario B: The third phase undergoes adjustments in scope, timing, or beneficiary criteria to better align with current economic conditions and policy objectives.
Scenario C: The third phase is paused or restructured if external shocks intensify or if fiscal constraints tighten, with alternative measures deployed to preserve stimulus momentum.

Operational priorities for successful rollout

Key priorities include strengthening digital infrastructure, ensuring secure wallet operations, conducting proactive outreach to potential beneficiaries, and establishing robust oversight mechanisms to protect against misuse.
Continuous monitoring and evaluation will be essential to determine the efficacy of the third phase and to inform future policy decisions.

Conclusion

In a moment of global economic uncertainty, Thailand’s government reaffirmed its commitment to a multi-faceted stimulus strategy that combines direct cash transfers with a digitized wallet approach. Prime Minister Paetongtarn Shinawatra’s assurance that the third phase of the 10,000-baht handout remains on the table reflects a deliberate effort to balance immediate demand support with caution about fiscal sustainability amid trade tensions and US tariff policies. Finance Minister Pichai Chunhavajira’s acknowledgment that all stimulus measures are under review underscores a pragmatic, data-driven stance aimed at optimizing policy impact without sacrificing long-term financial health.

The dialogue surrounding the third phase—its cost, scope, and potential beneficiaries—highlights a broader debate about how best to stimulate the Thai economy in an era of shifting external conditions. The government’s emphasis on listening to diverse opinions and adjusting strategies accordingly signals a governance approach that values inclusivity, transparency, and adaptability. While the first two phases laid the groundwork by directing aid to vulnerable groups, the planned third phase expands the program’s reach to younger citizens, seeking to sustain consumption and address evolving economic needs across demographics.

Thailand’s two-day official visit to Vietnam adds a regional dimension to these policy discussions, underscoring the importance of international partnerships as the country navigates domestic challenges. Regional cooperation can enhance investment, trade, and knowledge sharing, potentially complementing domestic stimulus measures and contributing to a more resilient economy.

As the Economic Stimulus Policy Committee continues its deliberations, the nation watches to see how the balance between cash-based relief, digital wallet initiatives, and other policy instruments will shape Thailand’s growth trajectory in the coming months. The ultimate objective remains clear: to foster a robust, inclusive, and sustainable recovery that benefits a broad spectrum of Thai society, while maintaining responsible fiscal stewardship in a complex global environment.