BANGKOK - THAILAND'S Cabinet approved a 115 billion baht (S$4.9 billion) economic stimulus package yesterday which it hopes will shore up an economy hit by the global downturn and recent political turmoil.

Prime Minister Abhisit Vejjajiva said the money will be allocated to help the poor deal with the economic downturn and to rejuvenate a tourism industry battered by months of political unrest.

Anti-government protests culminated with a week-long seizure of Bangkok's airports last year, which the Bank of Thailand estimated will cost the country some 290 billion baht.

'The measures are based on the idea of reviving the economy directly, that is, adding money in people's pockets,' Mr Abhisit told reporters after a weekly Cabinet meeting.

'Giving money directly to people is the most effective way. It will lead to more spending that will help industrial, agricultural and business sectors.'

The funds will also be used to support social security and free education programmes, and to create jobs and provide low-interest loans to farmers.

The measures will be submitted to Parliament on Jan 28.

Mr Abhisit earlier defended his decision to appoint as adviser to the government a member of a protest group that was behind a siege of Bangkok's airports.

Mr Abhisit said Mr Prapanth Koonmee, a member of the People's Alliance for Democracy, had not committed any crime by giving speeches during the movement's rallies.

Mr Prapanth's appointment risks causing further divisions with supporters of ousted former premier Thaksin Shinawatra, whose allies were driven from government partly as a result of the crippling airport blockade in late November. -- AFP