Thailand Distributes Cash to Seniors, Aiming to Spur Economy
Thailand has disbursed approximately 30 billion baht ($890 million) to its elderly population, a component of a government initiative to alleviate living costs and revitalize the nation's economy.
Over 3 million senior citizens received 10,000 baht ($297) each, a measure projected to boost the country's $500 billion economy, according to Prime Minister Paetongtarn Shinawatra. The government intends to prolong the cash stimulus program.
The handout was a prominent election pledge of the Pheu Thai party, led by Paetongtarn, but its implementation was postponed due to legal concerns and a lack of readiness for a digital application. In the initial phase, the government dispersed the cash gift to 14.45 million welfare cardholders and disabled individuals.
Thailand's economic growth has fallen behind that of its regional counterparts in recent years. To address this, the Paetongtarn administration has introduced various measures, including debt moratoriums, increased government spending, and cash stimulus, aiming to elevate growth to around 3% this year.
Finance Minister Pichai Chunhavajira expressed confidence that growth will surpass 3% this year, attributed to stimulus measures and an influx of foreign investments in the latter half. The cash handout is estimated to add 0.1 percentage point to the GDP, according to Deputy Finance Minister Paopoom Rojanasakul.
A digital payment system to facilitate the transfer of funds to the remaining eligible recipients will be available by the second quarter, stated Deputy Finance Minister Julapun Amornvivat. Over 30 million people registered for the handout last year.
The government will evaluate the sufficiency of the 160 billion baht allocated in this year's budget for the program and consider additional funding if necessary, explained Julapun.
"The government will ensure the sustainability of ongoing economic growth momentum during both high and low seasons," he concluded.