Thai PM Proposes $102bn Budget To Boost Slow Economy

Thai Prime Minister Srettha Thavisin has proposed a 3.753 trillion baht ($102 billion) budget for the 2025 fiscal year to stimulate the country’s sluggish economy.

The budget, aimed at achieving full economic potential, was presented to the House of Representatives on Wednesday, kicking off a three-day debate.

The budget targets 2.5% to 3.5% economic growth in 2025, with inflation projected at 0.7% to 1.7%.

This came after last year’s 1.9% expansion, which lagged behind regional peers. The government aims to achieve at least 3% growth this year.

Srettha emphasised the importance of deficit budgeting to stimulate economic growth, with the 2025 budget papers projecting a 7.8% rise in spending and a 24.9% increase in the budget deficit to 865.7 billion baht.

The budget allocated 152.7 billion baht to finance the “digital wallet” handout scheme, which would provide 10,000 baht to 50 million Thais to boost local spending.

The scheme, initially delayed due to funding issues, is now scheduled for the fourth quarter of this year.

The budget debate comes amid a Constitutional Court case against Srettha, which could potentially lead to his dismissal.

The case, brought by conservative military-appointed senators, concerns a cabinet appointment made by Srettha, who denied any wrongdoing.

Enome Boluwatife

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