BANGKOK — The Thai government has approved the second phase of its 10,000 baht ($290) digital handout program, specifically targeting vulnerable elderly citizens aged 60 and above.
The initiative, announced during an economic stimulus committee meeting chaired by Prime Minister Paetongtarn Shinawatra on November 19, will benefit approximately 4 million eligible seniors, with a total budget allocation of 40 billion baht.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira explained that this phase focuses on addressing the needs of vulnerable elderly citizens. Assistant Finance Minister Julapun Amornvivat confirmed that distributions will commence before Chinese New Year 2025.
Eligibility Requirements:
- Must be 60+ years old and classified as vulnerable
- Must register through “Tang Rath” government app
- Not a recipient of Phase 1
- Annual income under 840,000 baht
- Total bank deposits under 500,000 baht
- Not imprisoned
- Not blacklisted from other government programs
A Debt Relief Initiative
In a significant parallel development, the government also unveiled a debt relief initiative. The program includes a three-year interest payment suspension for household debts, targeting loans less than one year old. This encompasses housing, vehicle, and consumer loans, with a total debt pool of approximately 1.2-1.3 trillion baht.
“During the first three years, principal payments will be reduced,” Chunhavajira stated. “For those who maintain good payment records, the interest reduction could extend to 5-10 years. However, those who fail to comply will need to resume regular interest payments.”
The government is currently developing a registration process for citizens without smartphones to ensure broader program accessibility.
Sirikanya Tansakul, deputy leader of the opposition People’s Party and monitor of government economic projects, criticized the government’s economic recovery plan. She posted that after making people wait for two full months, the announced plan still doesn’t utilize a digital wallet system. She also expressed uncertainty about whether this upcoming cash distribution to the elderly would effectively stimulate the economy.
GDP Target Hits 2.6%
According to the National Economic and Social Development Council’s announcement on November 18, Thailand’s Q3/2024 GDP grew 3%, with overall growth of 2.3% for the first 9 months.
Q3 growth was driven by government investment (expanding for the first time in 6 months), exports, and government consumption. Key metrics showed private consumption at +3.4%, service sector at +6.5%, construction at +15.5%, exports at +10.5%, and imports at +9.6%.
Thailand’s 2024 economic forecast was revised up to 2.6% from 1.9%. Inflation is expected at 0.5%, with the current account surplus projected at 2.5% of GDP.
Prime Minister Paetongtarn viewed the projected c economic growth for 2024 as a positive indicator for Thailand’s economy, noting that current growth is primarily driven by government investment and tourism sectors.
Recognizing the need for increased private sector participation, the Prime Minister has directed the Finance Ministry, Commerce Ministry, NESDC, and related agencies to develop measures to stimulate greater private sector investment to enhance GDP growth.
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