BOT sends warning over latest govt stimulus scheme
Central bank urges Cabinet to prioritise long-term investment following approval of 10,000-baht handouts for elderly
The Bank of Thailand (BOT) has urged the government to maximise the economic benefit of the 10,000-baht cash handout for the elderly, a Finance Ministry source said on Thursday.
The BOT intervened after the Cabinet approved the 10,000-baht allocation to citizens aged over 60, capped at 4 million people.
The cash handout will be made via PromptPay next month.
A source said the BOT responded by submitting an urgent letter calling on the Cabinet to ensure the large stimulus measure delivers maximum benefits to the economy.
The central bank has previously expressed opposition to the Pheu Thai-led government’s stimulus strategy, warning that its 10,000-baht digital wallet scheme could harm Thailand’s credit rating.
In its latest letter, the BOT also urged the Cabinet to:
- Allocate more budget for investment in infrastructure and human resources to boost the country’s long-term competitiveness and economic efficiency.
- Closely monitor the results and cost-effectiveness of the elderly payments, while prioritising revenue and accelerating debt repayment to ensure financial stability and mitigate the risk of rising borrowing costs.
- Study previous economic stimulus measures to boost data linkage between agencies involved.
The Office of Permanent Secretary for Finance will coordinate with relevant agencies to check eligibility of elderly recipients. The BOT urged the Cabinet to ensure legal guidelines are in place for implementation of the handout scheme.
