Thai Prime Minister Srettha Thavisin proposed a 3.753 trillion baht ($102 billion) budget for the 2025 fiscal year to stimulate the sluggish economy as lawmakers began a three-day debate. Srettha emphasised the importance of the budget in enabling the economy to reach its full potential.
The second-largest economy in Southeast Asia is predicted to expand by 2.5% to 3.5% by 2025, with 0.7% to 1.7% expected for inflation. Improving upon last year’s 1.9% growth, the administration is targeting a minimum of 3% growth this year. Srettha stressed that deficit budgeting was essential to rev up the sluggish economy.
The budget deficit is expected to expand to 865.7 billion baht in 2025 from 2024 levels, with a 7.8% increase in spending and a 24.9% increase in deficit. The budget would be used to distribute 500 billion baht via a “digital wallet” to 50 million Thais worth 10,000 baht each.
However, this programme will not be launched until the fourth quarter of this year because of problems with financing. At the same time this budget debate is taking place, a lawsuit in the Constitutional Court might result in Srettha being deposed.
