Thailand’s lower house has finally approved the 3.48 trillion baht budget bill for the fiscal year 2024, following a delay.
Key points include:
- The budget is expected to be available for use early next month.
- It aims to boost consumption in the Thai economy.
- The state planning agency has revised its growth forecast for 2024 to between 2.2% and 3.2%.
- The budget also includes a slight decrease in the deficit to 693 billion baht from the previous year.
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This approved bill is crucial for the recovery of Thailand’s economy, the second-largest in Southeast Asia. The delay, attributed to political gridlock following a May election, has impacted government spending and the economy, which contracted unexpectedly in the last quarter of 2023, with full-year growth at 1.9%.
The revised growth forecast underscores the need for economic stimulus measures and interest rate cuts. The budget allocates approximately 718 billion baht for investment, signaling the government’s commitment to strategic development projects. While the budget was supported by a majority in the lower house, it awaits approval from the Senate and royal before taking effect.
Prime Minister Srettha Thavisin has emphasized using the budget to support the economy, society, and living standards. However, his proposed 500 billion baht handout scheme, aimed at boosting growth, has faced skepticism over funding and potential inflationary effects.
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As Thailand works to navigate these economic challenges, the approval of the delayed budget marks a crucial step toward revitalizing the economy and securing a stable future for its citizens.
Source: Thailand Business News