Thailand disbursed approximately THB30 billion in total to over 3 million senior citizens on Monday, as part of a government initiative aimed at addressing the country’s high cost of living and reviving its sluggish economy.
Each senior citizen received 10,000 baht, with Prime Minister Paetongtarn Shinawatra mentioning that this distribution will provide a boost to Thailand’s US$500 billion economy. She also stated that the government intends to continue the cash stimulus program without providing further details.
While this cash handout was a key pledge during the election campaign of the ruling Pheu Thai party led by Paetongtarn, its implementation was delayed due to legal concerns and the lack of preparedness of a digital application. Initially, the government extended the cash grant to 14.45 million welfare cardholders and disabled individuals.
Thailand has faced slower economic growth compared to its regional counterparts over the past decade, prompting Paetongtarn’s administration to introduce several measures such as debt moratoriums, increased state expenditures, and cash stimuli to target a growth rate of around 3% this year.
Finance Minister Pichai Chunhavajira expressed confidence on Monday that growth will surpass the 3% mark this year due to the impact of the stimulus plans and the influx of foreign investments in the latter part of the year. The recent monetary distribution is expected to contribute 0.1 percentage point to the country’s gross domestic product, as per Deputy Finance Minister Paopoom Rojanasakul.
Deputy Finance Minister Julapun Amornvivat mentioned that a digital payment system for disbursing funds to the remaining eligible applicants is set to be operational by the second quarter, following the registration of over 30 million individuals for the cash handout last year.
