Thai Prime Minister Proposes $102 Billion Budget for Second Half of Fiscal Year

Thai Prime Minister Srettha Thavisin unveiled a budget of 3.48 trillion baht ($101.52 billion) for the second half of the current fiscal year, initiating a three-day debate among lawmakers. Emphasizing the budget’s significance in advancing the economy, the Prime Minister outlined key allocations and priorities.

The proposed budget aims to propel Southeast Asia’s second-largest economy, anticipating a growth range of 2.7% to 3.7% for the year. Inflation is projected to fall between 1.7% and 2.7%. The budget reflects a 9.3% increase in spending, coupled with a slight decrease of 0.3% in the budget deficit, reaching 693 billion baht.

Delayed due to prolonged political gridlock following a May election, this year’s budget excludes certain items already allocated for the first half of the fiscal year, such as civil servant salaries. Approximately 25% of the budget is allocated to address social issues, including concerns related to an aging population, education enhancement, and the expansion of universal healthcare.

The lower house is set to vote on the budget during the week, with expectations for finalization by early May. Notably, 11.3% of the budget is directed towards boosting competitiveness, focusing on areas such as energy security, the digital economy, and emerging industries like electric vehicles.

Thailand’s economy experienced a lower-than-expected growth rate of 1.5% in the July-September quarter, attributed to soft exports and government spending. The government’s $14 billion policy to provide 10,000 baht to nearly all Thais for spending in local communities is not included in the budget but may be considered in separate legislation.

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