Says government to move ahead with 14 bln handout scheme
Says policy rate should be cut at c. bank39;s Feb. 7 meeting
Plans to issue bonds overseas in 12 years
Plans to sell 100 bln baht of savings bonds in 2024 fiscal year

BANGKOK, Jan 29 Reuters Thailand39;s economy is in a state of recession owing to a high level of household debt, a deputy finance minister said on Monday, raising pressure on the central bank to cut interest rates.

Deputy Finance Minister Julapun Amornvivat also said the government was committed to delivering on its signature 500 billion baht 14 billion handout plan of transferring 10,000 baht 281 each to 50 million Thais, and hoped a delay in its rollout would not be long.

He said the country39;s policy interest rate, which is at a decadehigh of 2.50, should be cut at the central bank39;s next policy review on Feb. 7 to help lower high borrowing costs.

The rate should be lowered as high rates now are people39;s burden. People can39;t survive, he told reporters.

Prime Minister Srettha Thavisin has also urged the central bank to cut the key rate to help Southeast Asia39;s secondlargest economy he says is in crisis.

Bank of Thailand Governor Sethaput Suthiwartnarueput, who has come under fire from the premier for not cutting rates despite negative inflation, told Reuters last week growth had been slower than expected but the economy was not in crisis.

Sethaput said the current policy rate was broadly neutral.

The central bank left its…