“Right now, opinions [on the project’s next phase] are still being circulated [among the parties concerned], as we must take into account the changing global economic situation,” the Bangkok Post reports her as saying after the weekly Cabinet meeting.
“The National Economic and Social Development Council and the Bank of Thailand [for instance] have also provided their views, to which the government must listen,” the premier added.
The government had previously pushed forward this project for the sake of economic stimulation, but now that intervening factors have come into play, it must first reassess what the exact outcome of the planned stimulus could be, she said.
“In the end, whether this project will be postponed or not now depends also on the opinions of relevant agencies, even though the government, as the executive branch, has the authority to proceed with it,” said the PM.
She stressed that no changes have been made yet.
The government must collect agency feedback on the need for more economic stimulus, and how the remaining B150 billion could be used to achieve the maximum benefit for the country, Ms Paetongtarn said, adding that it is the government’s ultimate goal.
When pressed to confirm if the government really intends to proceed with the project, she reiterated that the opinions of certain agencies must be sought first.
The proposal to proceed with the third phase, which was expected to be tabled and approved by the Cabinet yesterday, has been deferred to a later date, she said.
According to a Government House source, the government has B157bn left to fund the third and last phase of the scheme, a grassroots economic stimulus policy, in which around 2.7 million Thais aged 16 to 20 will be given B10,000 each in digital currency to help stimulate the economy.
This means about B27bn of the remaining funds will be spent should the government proceed, said the source.
Yesterday’s decision by the Cabinet came despite assurances to the contrary by Deputy Finance Minister Julapun Amornvivat last week.
One of the reasons why the government is considering scrapping phase three is because the previous two phases barely yielded any significant effects, according to a source quoted by Isra News Agency.
The remaining B150bn would then likely be diverted to other stimulus projects seen as being more effective in curbing the impact of Trump’s tariff policies, said the source.
The first B100bn would likely go to funding the government’s investment in improving the water management system, and the rest to projects to help people who lose their jobs due to the tariff squeeze, the source added.
The Pheu Thai Party-led coalition has spent B185bn in funding the scheme, in which 14.5mn people were given B10,000 in cash.
While the impact of the tariff policies is being assessed, government spending must be carefully monitored, said finance permanent secretary Lavaron Sangsnit.