Thai Prime Minister Srettha Thavisin tabled a budget of 3.753 trillion baht ($102 billion) for the 2025 fiscal year to revitalize the country’s sluggish economy as parliament commenced a three-day deliberation. The budget is designed to propel economic growth to its maximum capacity, Srettha informed the House of Representatives.
The second-largest economy in Southeast Asia is forecasted to expand by 2.5% to 3.5% in 2025, with inflation anticipated to be between 0.7% and 1.7%, he added. The government aims for a growth rate of at least 3% this year, following last year’s 1.9% growth rate that fell short of its regional counterparts. Srettha emphasized the importance of deficit budgeting to stimulate significant growth in a sluggish economy.
According to the 2025 budget documents, expenditure is projected to increase by 7.8%, with the budget deficit rising by 24.9% to 865.7 billion baht from the previous fiscal year. Previously, the government announced that a portion of the 2025 budget, amounting to 152.7 billion baht, would be utilized to support a landmark 500 billion baht “digital wallet” subsidy program.
This initiative, which entails a disbursement of 10,000 baht per person to 50 million Thai citizens for spending within their communities, has been postponed to the fourth quarter of this year due to financial constraints.
The budget discussion coincides with Srettha’s confrontation with a Constitutional Court lawsuit that could potentially result in his removal from office. The lawsuit, initiated by a group of 40 conservative senators appointed by the military, revolves around a cabinet appointment made by Srettha. The prime minister has refuted any allegations of misconduct.
