Bt2,000 handouts to give economy a push

The University of Thai Chamber of Commerce poll found that the handouts would play an important role in driving the economy. Although the entire amount would not be spent as hoped for by the government, more than 75 per cent of the total payment is expected to be spent by workers this year.

The UTCC's Economic and Business Forecasting Centre found that the government's cash handout project would help stimulate the country's economy by three times from its budget.

In the first 15 days through the Songkran Festival, Bt15 billion to Bt17 billion would be spent, the poll said.

The Bt2,000 handouts are being given to more than 8.1 million workers making less than Bt15,000 a month as part of a social-welfare scheme to help lower-income earners cope with the cost of living and stimulate domestic spending.

Based on a survey of 1,047 respondents from March 26 to 28, about 32 per cent of respondents said they would spend the entire Bt2, 000 handout. About 25 per cent said they would spend a major part of the cash, while 20 would spend half, and 11 per cent would spend less than half of the handout. About 10 per cent said they would not spend at all.

Of the Bt2,000 handout per person, an average of Bt1, 546.77 would be spent.

The survey also found that most respondents, up to 80.7 per cent, would immediately encash the cheque as they are afraid of losing it. The remainder would use it for purchasing goods and foods to avail of discounts. Some consumers would use it for purchasing goods whose value is in excess of Bt2,000, following many campaigns by department stores and brand-name goods.

About 92 per cent would spend the money on essential consumer goods, followed by clothes, and electronic appliances, and savings for emergencies.