Thailand approves $5.8 billion cash handout to boost economy

Bankok Thailand Getty Images Bank — Bankok, Thailand. Getty Images Bank

SEOUL, September 18 (AJP) - The Thai government has approved a 145.6 billion baht ($5.8 billion) cash handout program for 14.5 million vulnerable citizens in an effort to stimulate the economy. Starting Sept. 25, low-income individuals with welfare cards and disabled persons will receive 10,000 baht ($400) directly into their bank accounts.

This initiative is a scaled-down version of the Pheu Thai Party's election promise to distribute 10,000 baht to every Thai citizen. The original plan faced criticism from opposition parties, economists, and the Bank of Thailand for being populist and financially irresponsible. The government has postponed support for the remaining 30 million people until next year.

Prime Minister Paetongtarn Shinawatra stated that the cash injection is expected to boost GDP growth by 0.35 percentage points, emphasizing that vulnerable groups tend to have higher spending ratios, which should result in a definite economic stimulus effect.

Thailand's economy has been struggling, with GDP growth reaching only 1.9 percent last year. This cash handout program represents the government's attempt to address economic challenges and fulfill campaign promises, albeit on a reduced scale.

AJP

Thailand approves $5.8 billion cash handout to boost economy

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