Thai PM proposes $138b budget to parliament to revive economy

BANGKOK — Thai Prime Minister Srettha Thavisin on June 19 proposed a 3.753 trillion baht (S$138 billion) budget for the 2025 fiscal year to jump-start the country’s sluggish economy as lawmakers began a three-day debate.

The budget is aimed at helping the economy grow at its full potential, Srettha told the House of Representatives.

South-east Asia’s second-largest economy is expected to grow 2.5 per cent to 3.5 per cent in 2025, with inflation projected at 0.7 per cent to 1.7 per cent, he said.

The government is targeting growth of at least three per cent in 2024, after 2023’s 1.9 per cent expansion lagged behind that of regional peers.

"Deficit budgeting is important and necessary to stimulate a slow economy to grow significantly," Srettha said.

The 2025 budget papers project a 7.8 per cent rise in spending and an increase of 24.9 per cent in the budget deficit to 865.7 billion baht from the 2024 fiscal year.

The government earlier said some 152.7 billion baht of the 2025 budget would be used to help finance a signature 500 billion baht "digital wallet" handout scheme.

The scheme, which involves a giveaway of 10,000 baht per person to 50 million Thais to be spent in their communities, has been delayed to the fourth quarter of 2024 due to funding issues.

The budget debate comes as Srettha faces a Constitutional Court case that could potentially lead to his dismissal.

The case over a Cabinet appointment made by Srettha was brought on by a group of 40 conservative military-appointed senators. The prime minister denies any wrongdoing.

ALSO READ: Majority of Thais unhappy with PM Srettha's government, poll shows