BANGKOK, June 20 — Thai Prime Minister Srettha Thavisin yesterday proposed a ฿3.753 trillion (RM481.5 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.
Southeast 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 3 per cent this year, after last year’s 1.9 per cent expansion lagged 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 from the 2024 fiscal year.
The government earlier said some ฿152.7 billion of the 2025 budget would be used to help finance a signature ฿500 billion “digital wallet” handout scheme.
The scheme, which involves a giveaway of ฿10,000 to 50 million Thais each to be spent in their communities, has been delayed to the fourth quarter this year 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.
— Reuters
