Thailand to give US$4.2b in cash handouts to boost economy

Thailand will start rolling out a one-time cash assistance to its citizens this month, as authorities seek to revitalize Southeast Asia’s second-largest economy 

The government will on Sept. 25 transfer 10,000 baht ($296.4) each to around 14.2 million Thais that form part of the economically vulnerable group, Finance Minister Pichai Chunhavajira told the nation’s parliament on Thursday. He, however, didn’t commit a timeline for payment to others that registered for the program.

“We have limited budget,” Pichai said. “We will prioritize the budget to restructure the weak points of our nation first to help our medium- and long -term growth.”

Around 30 million people had signed up for the one-time cash assistance, a key election promise of the ruling Pheu Thai Party to spur consumption and business activity. The government expects that to in turn lift the economy from a prolonged period of low growth.

The cash assistance is expected to provide much-needed relief to households weighed by high debt levels.

Critics of the program, including the Bank of Thailand, have hit out at its structure and cost, as well as the potential inflationary impact. –BLOOMBERG