The 10,000-baht cash handout for the elderly has stimulated spending, with withdrawals from Bank for Agriculture and Agricultural Cooperatives (BAAC) ATMs surging 13.3 times on the first day of transfers.
According to Deputy Finance Minister Paopoom Rojanasakul, the atmosphere for the second phase of the 10,000-baht stimulus handout for Thais 60 and older was lively, with many recipients withdrawing cash to spend.
On Jan 27, the first day of the transfers, withdrawals from BAAC ATMs rose 13.3 times compared with an average day, leading to greater money circulation and driving economic expansion, he said.
For the second phase, 3,025,596 people were scheduled to receive the funds. Of these, 2,825,076 successfully received the money, while 200,520 transactions failed.
The reason for 97.1% of failed transfers was the absence of a linked PromptPay account, while 2.90% were due to account issues such as closed accounts or restrictions.
The government advised individuals who failed to receive transfers to resolve these issues promptly to receive their funds during the next scheduled transfer attempts on Feb 28, March 28 and April 28, linking their PromptPay accounts with their bank accounts or addressing any account problems.
The first phase of the programme provided cash to 14.5 million individuals, mostly state welfare cardholders and disabled people.
Prime Minister Paetongtarn Shinawatra inaugurated the senior cash distribution programme on Jan 27, emphasising the government's commitment to stimulus.
She said improving the economy is essential to ensure people have sufficient resources for daily expenses, reduce financial burdens, and provide capital for individuals to sustain their livelihoods.
To qualify for the second phase, recipients must be at least 60 years old and meet additional eligibility conditions, including an annual taxable income of no more than 840,000 baht in the 2023 tax year, and a total bank balance not exceeding 500,000 baht as of June 30, 2024.
The Finance Ministry said seniors are among the most financially vulnerable groups, particularly regarding income stability.
Given their high marginal propensity to consume, most of the funds received are likely to be spent immediately, stimulating economic activity, noted the ministry.
The ministry believes the programme could add 0.07-0.1 percentage points to GDP.
