The Thai government disbursed around 30 billion baht ($890 million) to its senior citizens on Monday, marking the latest phase of a large-scale stimulus program aimed at tackling the rising cost of living and revitalizing the country’s sluggish economy, Bloomberg reports.
Prime Minister Paetongtarn Shinawatra announced that over 3 million senior citizens each received 10,000 baht ($297) as part of the initiative. She emphasized that the cash injection was expected to boost the nation’s $500 billion economy, adding that the government intends to continue the cash stimulus program moving forward, though she did not elaborate on future plans.
The handout was a key campaign promise of the ruling Pheu Thai party, led by Prime Minister Shinawatra. However, the rollout faced delays due to legal concerns and the need to finalize a digital payment application. The first phase of the program saw cash gifts extended to 14.45 million welfare cardholders and individuals with disabilities.
Thailand’s economic growth has lagged behind its regional neighbors over the past decade. The current administration has implemented a range of measures to jumpstart the economy, including debt moratoriums, increased state spending, and cash stimulus programs. They aim to push growth this year to around 3%.
Finance Minister Pichai Chunhavajira expressed confidence on Monday that the growth rate would surpass 3% this year, citing the positive impact of the stimulus measures and an expected influx of foreign investment during the second half of the year. Deputy Finance Minister Paopoom Rojanasakul further estimated that the latest cash handout could add 0.1 percentage point to the gross domestic product.
A digital payment system for transferring funds to the remaining eligible applicants is expected to be operational in the second quarter of the year, according to Deputy Finance Minister Julapun Amornvivat. Over 30 million individuals registered for the handout program last year.
Julapun also indicated that the government is prepared to allocate additional funds to the program if the initial 160 billion baht set aside for this year’s budget proves insufficient.
