Paetongtarn Shinawatra, the youngest prime minister in Thai history, put an end to a months-long policy debate just a few days after taking office. 

Paetongtarn stated at a press conference shortly after taking office that a $14 billion stimulus plan—a significant campaign promise made by her predecessor—needed more examination to determine whether or not it met with the nation's rules governing budgetary restraint. It's the most recent setback in Thailand attempt to boost spending in its economy, which has been hindered by slowing manufacturing and a weaker-than-anticipated recovery in tourism.

On August 18, after Srettha Thavisin was removed by Thailand's constitutional court for a purported ethical transgression, Paetongtarn took the oath of office as prime minister. It was alleged that Srettha appointed a minister who had a criminal record.

Paetongtarn is the niece of Yingluck Shinawatra, the younger sister of the late, controversial prime minister of Thailand, and the youngest daughter of the late Thaksin Shinawatra.

Supported by Thaksin as well, Srettha used the consumer stimulus as a centerpiece of his campaign during the general elections of the previous year and persisted in promoting it as prime minister, referring to it as a “life-changing policy for the people.”

Srettha stated in July that Thais might begin registering for the digital currency distribution on August 1. By the end of the fourth quarter of this year, the program is expected to provide up to 50 million Thais with a government stimulus of 10,000 Thai baht ($290) via a digital wallet. To be eligible, an individual had to have less than 70,000 baht ($2,030) per month and less than 500,000 baht ($14,500) in savings.

However, detractors claimed that a direct stimulus package that may total up to $14 billion would exacerbate Thailand's deficit and accelerate inflation. These opponents included economists, former central bankers, and opposition politicians. The director of Thailand's budget issued a warning in April, stating that the deficit for the current fiscal year will increase by $23.6 billion, or 4.4% of GDP.

Srettha was forced to alter the funding strategy for his stimulus package due to the possibility of legal challenges. Srettha suggested using funds from the state budget for the upcoming fiscal year, which begins on October 1, in addition to a supplemental budget from the current fiscal year, rather than relying on one-time borrowing.