The cabinet has approved the "Thais Help Thais Plus" programme together with additional support measures for vulnerable groups, with a combined budget of 176 billion baht, Finance Minister Ekniti Nitithanprapas announced on Tuesday.
The programme is designed to ease the burden of rising living costs as Thailand faces what the government has described as a second wave of the global energy crisis.
Programme registration will open through the Paotang application between May 25 and 29, with benefits available from June 1 to Sept 30 at participating retailers nationwide. The programme will help reduce living costs for more than 43 million citizens.
Speaking after Tuesday's cabinet meeting, Mr Ekniti, also a deputy prime minister, said higher energy prices have driven up production costs across the economy and pushed inflation upwards, despite negative inflation recorded during the first quarter of the year. Inflation rose to 2.9% in April and could climb as high as 5% this year if the current cycle is not contained, he warned.
Mr Ekniti said prolonged inflationary pressure could force many small businesses to close and lead to job losses, particularly among lower-income groups with limited financial reserves.
"The government's objective is not to stimulate economic growth, but to provide temporary relief to households and help small businesses survive during a period of weakening domestic purchasing power," he said.
In addition, the programme will seek to improve the capabilities of small retailers participating in the scheme by introducing AI tools to analyse business performance, including operating costs and daily sales figures, he said.
The system will also generate financial statements that merchants can use when applying for loans from state-owned financial institutions.
The "Thais Help Thais Plus" scheme will provide assistance to three main groups.
The first group consists of 13.18 million state welfare cardholders. Under the programme, recipients will receive an additional 700 baht per month on top of the existing 300 baht allowance, increasing total monthly support to 1,000 baht for four months between June and September 2026.
The measure will require a budget of 56 billion baht.
Existing welfare card holders will automatically receive the funds, while the Interior Ministry has been instructed to update its database to ensure broader coverage of vulnerable populations.
The second group targets about 30 million salaried workers and members of the general public.
With a budget allocation of 120 billion baht, the government will subsidise 60% of spending on food, beverages, goods and approved services, while participants will pay the remaining 40%.
State support will be capped at 200 baht per person per day, or no more than 1,000 baht per month, over a four-month period.
Any unused balance cannot be carried forward to the following month.
The third component of the programme focuses on supporting small retailers and local businesses struggling with rising operating costs and slowing consumer demand.
As part of the scheme's "Plus" initiative, AI tools will be introduced to help merchants analyse their sales trends, manage inventory, and generate financial statements for loan applications to state-owned financial institutions.
Krungthai Bank president Payong Srivanich said the bank would deploy its AI platform, known as "Whispering Bird", to assist participating merchants, particularly food vendors, many of whom account for more than half of the programme's expected one million participating shops.
