19-6-2024 (BANGKOK) Prime Minister Srettha Thavisin has unveiled an ambitious 3.753 trillion baht (S$138 billion) budget proposal for the 2025 fiscal year. The proposed budget, which kicked off a three-day parliamentary debate on June 19, is designed to catalyze the country’s economic growth and propel it towards its full potential.
Addressing the House of Representatives, Srettha emphasized the significance of the budget, stating that it is crucial for helping the Southeast Asian nation’s economy regain its momentum. According to the prime minister’s projections, Thailand’s economy is expected to grow within the range of 2.5 per cent to 3.5 per cent in 2025, with inflation projections ranging from 0.7 per cent to 1.7 per cent.
The government has set its sights on achieving a minimum growth rate of three per cent in 2024, a target that comes in the wake of 2023’s underwhelming 1.9 per cent expansion, which lagged behind the performance of regional peers.
“Deficit budgeting is important and necessary to stimulate a slow economy to grow significantly,” Srettha emphasized, underscoring the necessity of bold fiscal measures to revive the country’s economic fortunes.
The 2025 budget papers reveal a substantial 7.8 per cent increase in government spending and a staggering 24.9 per cent surge in the budget deficit, which is projected to reach 865.7 billion baht – a significant leap from the previous fiscal year.
Notably, the government has earmarked a substantial 152.7 billion baht from the 2025 budget to finance its flagship “digital wallet” handout scheme. This ambitious initiative, which involves a giveaway of 10,000 baht per person to 50 million Thais to be spent within their local communities, has faced delays and is now slated for rollout in the fourth quarter of 2024 due to funding constraints.
The budget debate comes at a pivotal juncture for Srettha, who is currently embroiled in a Constitutional Court case that could potentially lead to his dismissal. The case, brought forth by a group of 40 conservative military-appointed senators, revolves around a Cabinet appointment made by the prime minister, though he has vehemently denied any wrongdoing.
