"Youth Also Receive 430,000 Won Each"…'I Nara' Pushes Payments Despite Populism Criticism

Subsidy of 430,000 Won per Person to Be Distributed to Thai Teenagers
Deputy Prime Minister Pichai: "Digital Wallet System Will Lay the Foundation for the Digital Economy"
Concerns Raised Over Effectiveness and Fiscal Burden

The Thai government, after providing 430,000 won per person to the elderly, has decided to grant the same amount of subsidy to teenagers.

The Thai government, after providing 430,000 won per person to the elderly, will also give the same amount of subsidy to teenagers. Photo by EPA and Yonhap News

According to local media Bangkok Post and Reuters on the 11th, the Thai Economic Stimulus Committee approved a plan the day before to provide 10,000 baht (approximately 430,000 won) per person to 2.7 million citizens aged 16 to 20.

Deputy Prime Minister and Finance Minister Pichai Chunhawanichira announced that, after cabinet approval, the subsidy will be distributed through a 'digital wallet' in the second quarter of this year. Once digital currency is provided, citizens can use it like cash via smartphones and other devices.

Deputy Prime Minister Pichai said, "By utilizing the digital wallet system, the government can track subsidy usage information, which will help in future policy formulation," adding, "It will lay the foundation for Thailand's digital economy."

Previously, the Thai government introduced the subsidy policy to stimulate the economy. In September last year, about 14.5 million vulnerable people and about 3 million elderly people in January this year received 10,000 baht in cash per person. The current ruling party, Phua Thai Party, had made the provision of 10,000 baht per citizen a key pledge in the last general election.

However, the opposition parties have criticized it as a populist policy. Economists and the Bank of Thailand (BOT) have also voiced concerns about side effects such as national fiscal burden and inflation.

There are also criticisms that the subsidy has not had a significant effect on economic stimulation. Sethaput Suthiwartnarueput, Governor of the BOT, said in a Reuters interview last January, "The provided support funds were used to pay off debts," and "They were not converted into consumption."

Amid ongoing controversy over the subsidy payments, the Thai government is maintaining its subsidy policy. Deputy Prime Minister Pichai said, "The distributed subsidies will spread nationwide and alleviate household debt burdens," and added, "The government believes this policy is worth it."