Author: Orathai Sriring and Panarat Thepgumpanat
BANGKOK (Reuters) – The Thai government’s 3.753 trillion baht ($102 billion) budget for fiscal 2025 is expected to pass a first parliamentary vote later on Friday, but there will be a series of further votes before enactment. The Pheu Thai-led government holds a majority in the House of Representatives and a draft budget bill aimed at boosting the sluggish economy is expected to pass in the first vote.
The 2025 budget, which starts on October 1, predicts that spending will grow 7.8% compared with fiscal year 2024, and the budget deficit will grow 24.9% to 865.7 billion baht.
The bill still needs to pass second and third readings in the House of Commons, expected in August, before going to the Senate and royal assent.
Prime Minister Srettha Thavisin said an expansionary budget is needed to stimulate the sluggish economy and said on Friday he expected to announce additional stimulus early next week. 3%, lagging behind regional peers in terms of expansion percentage after last year’s 1.9%.
The government said that about 152.7 billion baht in the 2025 budget will be used to fund its signature 500 billion baht “digital wallet” distribution plan.
The plan, which involves giving away 10,000 baht to each of 50 million Thais to spend in their communities, has been postponed to the fourth quarter of this year due to funding issues. Economists and two former central bankers say the plan is fiscally irresponsible.
The government said it would fund the policy from the 2024 and 2025 budgets, as well as from a state bank.
The budget debate comes as Sreeta faces a Constitutional Court case that could lead to his dismissal. The Prime Minister denies any wrongdoing and the next hearing in the case is scheduled for July 10.
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