Thailand unveils billion-dollar handout scheme to boost economy

Thailand’s government unveiled a billion-dollar handout scheme on Wednesday that it hopes will boost the flagging economy but warned recipients would not be allowed to spend the money on marijuana, jeweler or lottery tickets.

More than 50 million eligible citizens will be able to begin registering for a digital payment of $277 from August 1, Deputy Finance Minister Julapun Amornvivat told a news conference.

The money can be spent at registered shops and outlets but he said that those selling marijuana, jewelry or lottery tickets would not be eligible.

Recipients will begin receiving the money in the fourth quarter of 2024, he said.

The scheme is projected to cost around 450 billion baht ($12.5 billion).

Finance Minister Pichai Chunhavajira said it was necessary to “inject money” into the system to boost Thailand’s flagging economy.

The nation’s vital tourism sector accounts for almost 20 percent of its GDP but has struggled in the wake of the COVID-19 pandemic and changing traveler habits.

Chinese tourists in particular have been slow to return. They previously accounted for the largest percentage of Thailand’s visitors, with around 11 million touring the country in 2019.

The World Bank forecasts Thailand’s economy will grow by 2.4 percent in 2024, up from 1.9 percent in 2023.