Prime Minister Srettha Thavisin's signature 500 billion baht ($13.87 billion) stimulus policy has faced criticism over fears it could stoke inflation and adversely impact the fiscal position of Southeast Asia's second-largest economy.
Thailand's economy grew just 1.8% year-on-year in the second quarter, sharply slowing from the previous quarter, hit by weak exports that undercut a recovery in its crucial tourism sector.
But some analysts are sceptical, as are some opposition lawmakers who have attacked the ruling Pheu Thai party for risking breaching Thailand's fiscal regulations.
"We expect Thailand's fiscal outlook to remain uncertain for the rest of this year," said Tim Leelahaphan, an economist at Standard Chartered Bank in Thailand.
"Also, the Pheu Thai-led government's ability to implement its pledged economic policies including the handout scheme has yet to be assessed, adding to fiscal uncertainty."
Persons:
Lertsuridej, Srettha Thavisin, Devjyot, Srettha, Prommin, Tim Leelahaphan, Martin Petty
Organizations:
Reuters, Government House, REUTERS, Rights, stoke, Standard Chartered Bank, Thomson
Locations:
Bangkok, Thailand, Rights BANGKOK