Prime Minister Paetongtarn Shinawatra has defended the government's decision to postpone the third phase of the 10,000-baht handout programme, saying uncontrollable circumstances made it impossible to implement it.
The premier on Tuesday dismissed criticism that the Pheu-Thai-led government had failed to fulfil its election pledge of implementing the scheme.
She said that money was already given to welfare cardholders, people with disabilities, and those aged 60 and over under the first two phases of the scheme, but the third phase has to be postponed due to unexpected events, particularly the US's reciprocal tariffs, which have affected numerous countries.
"Circumstances that have occurred are unforeseen and beyond our control," the prime minister said, referring to the US's trade tariff policy.
Ms Paetongtarn said that the National Economic and Social Development Council and the Bank of Thailand have recommended that a budget of 157 billion baht be spent on issues that are more urgent than the handout scheme.
"Issues must be reprioritised to decide what's most important and focus on what will benefit the people most," she said.
"We need to make adjustments and redirect funds from the central budget to invest in infrastructure and human resource development among other projects," she said, adding that the Finance Ministry will provide additional details later.
"We are not saying we will scrap [the handout programme]. We will implement it if the situation improves," she said.
"The sum of 157 billion baht must be spent where the country will receive maximum benefits. If the economy is in good shape, the handout scheme will be the best measure. But in current circumstances, a handout programme is not the best economic stimulus," she said.
Asked if the postponement of the handout scheme would put a dent in Pheu Thai's voter support, Ms Paetongtarn said the party had assessed the situation and come up with practical policies.
She also said an allocation of 157 billion baht, which comes from the central budget, must be spent by Sept 30, otherwise the allocation will be scrapped.
The government has postponed the third phase of the 10,000-baht handout programme to instead spend the funds on solving structural issues and investing in infrastructure projects.
The third phase of the digital wallet project, expected to cost 27 billion baht, was to be given to 2.7 million young people aged 16 to 20. Critics have argued the funds might be better used elsewhere, citing the limited economic impact of the first two phases.
Finance Minister Pichai Chunhavajira previously denied reports that there were insufficient funds to finance the digital wallet scheme, saying the circumstances had changed and adjustments must be made accordingly.
Government spokesman Jirayu Houngsub said on Tuesday the cabinet approved adjustments to the 157-billion-baht spending plan, with funds to be redirected to fund development and investment projects.
