Thailand Government Cash Boost Fuels Economic Growth
Thailand disbursed approximately US$890 million to its senior citizens on Monday (Jan 27). This marks the latest move in a government initiative aimed at tackling the high cost of living and boosting the country’s sluggish economy.
Over 3 million senior citizens each received 10,000 baht (S$399) as part of the cash stimulus program, according to Prime Minister Paetongtarn Shinawatra. The disbursement is expected to contribute to the nation’s US$500 billion economy. Furthermore, Paetongtarn affirmed the government’s commitment to continuing the program without providing additional details.
The cash handout was a key election pledge by the ruling Pheu Thai Party, led by Paetongtarn. However, the initiative faced delays due to legal concerns and the unavailability of a digital application for seamless distribution. In its initial phase, the programme extended financial aid to 14.45 million welfare cardholders and disabled citizens.
Economic Growth Outlook
Thailand has experienced slower economic growth compared to its regional counterparts over the past decade. To reverse this trend, the government has introduced measures such as debt moratoriums, increased state spending, and cash stimulus packages. These efforts aim to boost economic growth to approximately 3% in 2025.
Finance Minister Pichai Chunhavajira expressed confidence that these initiatives will boost economic growth beyond the 3% target. He highlighted the expected inflow of foreign investments in the second half of the year as a key driver. Deputy Finance Minister Paopoom Rojanasakul added that the recent cash disbursement could raise GDP by 0.1 percentage point.
Thailand Government Cash Rollout
Deputy Finance Minister Julapun Amornvivat revealed plans to launch a digital payment system for transferring funds to the remaining eligible applicants by the second quarter of this year. More than 30 million people registered for the handout in 2024, signaling strong public demand for the programme.
To support the initiative, the government allocated 160 billion baht in this year’s budget. Julapun stated that the government may allocate additional funding if the current budget falls short. He emphasized the administration’s commitment to maintaining economic growth momentum. This effort will continue throughout both high and low seasons.
The cash stimulus programme reflects the government’s broader strategy to address economic challenges and provide immediate relief to vulnerable groups while laying the groundwork for long-term growth.