On 20 May 2025, Thailand’s Cabinet approved the reallocation of 157 billion baht from the Central Fund toward infrastructure, agriculture, and community programs in an effort to jumpstart economic activity amid slowed domestic growth and external trade uncertainties.
The reallocated budget includes funds previously set aside for the government’s suspended digital wallet initiative. According to government spokesman Jirayu Houngsub, the money will now be distributed across five core areas, each intended to stimulate local and national economies.
Water management will receive significant funding, with plans aimed at flood prevention during the rainy season, enhancing water storage for the dry season, improving supply to agricultural and residential zones, and upgrading tap water systems.
In transport and communication, the Cabinet endorsed proposals to address persistent traffic congestion, construct missing road links, improve safety features at rail crossings, and develop additional rest stops, particularly in regional cities and tourist zones.
Tourism-related development is also a focus, including the installation of more public restrooms, road signage, and expanded surveillance systems in high-traffic tourist destinations. These measures are intended to enhance both convenience and safety for domestic and international visitors.
Additional funds will be directed at strengthening agricultural productivity and supporting exporters as the country faces increasing trade pressure, including higher U.S. tariffs on Thai goods. Financial aid for community-based programs, such as the long-running Village Fund, will also be expanded to stimulate grassroots economic participation.
Prime Minister Paetongtarn Shinawatra noted that while the digital wallet scheme has been paused, it has not been permanently cancelled. She stated that the Economic Stimulation Committee concluded the program was not the most effective strategy under current conditions. The government’s priority, she added, is to deploy resources for maximum public benefit in light of current economic challenges.
The Cabinet meeting was chaired by Prime Minister Paetongtarn Shinawatra and attended by senior government officials from various economic and development agencies.
