Thailand hands out US$890 million to elderly in boost for economy
Finance Minister Pichai Chunhavajira is confident growth will exceed 3% this year because of the stimulus measures and inflow of foreign investments
THAILAND transferred about US$890 million to its senior citizens on Monday (Jan 27), part of a government programme to tackle the high cost of living and stimulate the nations’ sluggish economy.
More than 3 million senior citizens were given 10,000 baht each (S$399), and the dole out will boost the country’s US$500 billion economy, Prime Minister Paetongtarn Shinawatra said. The government will continue the cash stimulus programme, she said without elaborating.
The handout was a flagship election promise of the ruling Pheu Thai party led by Paetongtarn but its rollout was delayed due to legal risks and lack of readiness of a digital application. In the first phase, the government extended the cash gift to 14.45 million welfare cardholders and disabled.
Thailand’s economic growth has lagged its regional peers in the past decade, and Paetongtarn’s administration has unveiled a raft of measures including debt moratoriums, higher state spending and cash stimulus to lift growth this year to about 3 per cent.
Finance Minister Pichai Chunhavajira said on Monday he’s confident the growth will exceed 3 per cent this year because of the stimulus measures and inflow of foreign investments in the second half. The latest cash handout may add 0.1 percentage point to the gross domestic product, according to Deputy Finance Minister Paopoom Rojanasakul.
A digital payment system for transfer of money to the remaining eligible applicants for the dole out will be ready within the second quarter, Deputy Finance Minister Julapun Amornvivat said. More than 30 million people had registered for the handout last year.
The government will consider whether to set aside more money for the programme if the 160 billion baht allotted in this year’s budget is inadequate, Julapun said. “The government will ensure that the ongoing economic growth momentum is sustained during the high and low seasons,” he said. BLOOMBERG
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