Thailand Distributes $890 Million to Support Elderly and Stimulate Economy

Thailand has transferred approximately 30 billion baht ($890 million) to senior citizens as part of a government initiative to address the rising cost of living and boost the country’s $500 billion economy. Over 3 million elderly individuals received 10,000 baht each ($297), a move Prime Minister Paetongtarn Shinawatra says will provide a much-needed economic uplift. The government plans to continue the cash stimulus program, although further details have not yet been disclosed.

The payout was a key election promise of the ruling Pheu Thai Party, led by Paetongtarn. However, its implementation faced delays due to legal concerns and issues with a digital payment system. In its initial phase, the government provided financial aid to 14.45 million welfare cardholders and people with disabilities.

Thailand's economic growth has lagged behind its regional peers over the past decade. To address this, the Paetongtarn administration has introduced several measures, including debt relief, increased state spending, and cash stimulus programs, aiming to raise economic growth to around 3% this year.

Finance Minister Pichai Chunhavajira expressed confidence on Monday that these efforts, combined with foreign investments expected in the latter half of the year, will push growth beyond 3%. Deputy Finance Minister Paopoom Rojanasakul estimated the cash handout could add 0.1 percentage points to the GDP.

A digital system to process payments for remaining eligible recipients is expected to be operational by the second quarter, according to Deputy Finance Minister Julapun Amornvivat. Last year, more than 30 million people registered for the program.

If the 160 billion baht allocated for the program in the current budget proves insufficient, the government will consider increasing funding. Julapun emphasized the government’s commitment to sustaining economic growth through all seasons.