Half of the 5.66 billion baht distributed to 11.3 million recipients of the government's welfare and subsidy scheme was disbursed within three days after the handout programme started, says the Comptroller-General's Department.
Since the handout was launched on Dec 8, 4.6 million recipients had cashed out 2.3 billion baht in total and another 850,000 recipients spent 425 million baht to purchase goods at Thong Fah Pracha Rat shops, said director-general Suttirat Rattanachot.
The cash handout is part of the government's 86.9-billion-baht splurge on low-income earners, the elderly and retirees, a spending scheme that the government has styled as a New Year gift.
Apart from the one-time payout of 500 baht, other measures in the package include a one-off 1,000 baht in travel expenses for people aged 65 and older who are in need of medical treatment, and 400 baht per month during December to September of next year to those aged 60 and older for home rental payments.
The government is counting on the measures, criticised as politically motivated as the general election draws nearer, to boost domestic demand and cushion Thailand against the global economic slowdown. The Fiscal Policy Office recently estimated that the handout spree could help boost economic growth by 0.07 percentage points.
Ms Suttirat said the 500-baht handout, which has been deposited in welfare smartcards, can be reserved for future spending, as the government has no plans to recall the money.
The FPO will cross-check the welfare smartcard holders' qualifications, with the Comptroller-General's Department being tasked to demand any unqualified card holders to repay the handout and suspend their cards, she said.
In the meantime, Finance Minister Apisak Tantivorawong said welfare smartcard holders can spend the 500-baht handout deposited in the cards to buy goods at Thong Fah Pracha Rat shops, through which they will get a double windfall from the value-added tax (VAT) payback scheme.
The cabinet earlier approved a VAT payback for welfare recipients. The six-month scheme, capped at 500 baht a month, started in November.
Based on the 7% VAT rate, welfare smartcard holders will get 5% VAT back for every purchase they make from November 2018 to April 2019 at shops registered under the VAT system, with 1% redirected to the National Savings Fund, the voluntary pension fund for self-employed workers.
The remaining 1% goes to the government's coffers.
The VAT payback scheme is intended to create more disposable income for low-income earners, while strengthening their purchasing power.