PM stands by modern bag, despite value
As the House of Representatives squatted its three-day conversation, Prime Minister Srettha Thavisin presented the 3.75 trillion-baht resources costs for the 2025 fiscal year with a plan to jump-start Thailand’s weak economy.
According to Mr. Srettha, the funds aims to aid the country’s market in reaching its full potential. The economy is expected to grow 2.5 % to 3.5 % in 2025, with inflation projected at 0.7 % to 1.7 %, he said.
Mr. Srettha expressed confidence in the third quarter earlier this month, but the government is now focusing on how to boost economic development in the second quarter.
He told the House the state recently launched its” Burn Thailand ‘ ‘ perspective for the nation that aims to leverage its strengths to come as a regional hub in eight key sectors: aviation, tourism, wellness and health, agriculture and food, logistics, potential mobility, digital economy and finance.
This perception may function as a guide for 2025 resources saving control, the prime minister said.
However, he noted that the world economy still faces restrictions and risk factors brought on by trade protectionionism and geopolitical tensions, which could be detrimental.
Additionally, Mr. Srettha assured that 50 million qualified people would receive 10, 000 baht as planned for the government’s designed digital wallet program in the final quarter of the year.
The “digital budget scheme” may trigger financial whirlwinds to boost the country’s economy from the ground up.
” It will drive spending, generation, and work, which in turn will provide tax revenues to the government to invest in projects to improve the country’s competitiveness”, Mr Srettha said.
The 2025 budget’s funding comes from an estimated 2.88 trillion baht of tax revenue and a payment to make up for the estimated 865 billion baht of budget deficit designated for the 2025 fiscal year.
Even though the budget deficit is higher than the current fiscal year’s, the government has set aside 908 billion baht for investment, representing 24.2 % of the total budget and a 27.9 % increase from the 2024 fiscal year, he said.
The first three months saw economic growth of 1.5 % year over year, which was lower than anticipated and surprised some observers.
The NESDC now anticipates a year-long GDP growth rate of between 2 % and 3 %, which is slightly below its previous projection of 2.2 % to 3.2 %. Last year’s growth was 1.9 %.
On May 28, the government approved a budget costs for 3.75 trillion baht for the 2025 fiscal year, starting Oct 1 and ending Sept 30 next month. Some 152.7 billion ringgit was earmarked to finance the president’s 500- billion- baht electronic funds handout scheme. Additionally, a proposal to use 122 billion baht from the fiscal budget for 2024 to finance the scheme was approved by the cabinet.
Of the 122 billion baht, 111 billion baht will come from a budget deficit while the rest will be diverted from the other parts of 2024’s spending, according to the Budget Bureau.
Previously, the government said it also planned to use funds from the Bank for Agriculture and Agricultural Cooperatives ( BAAC ), worth 172 billion, as one of the three main sources of funding. However, getting a loan from the BAAC to finance the scheme will face legal difficulties. According to the law of the BAAC, the bank can only provide financial aid to farmers, which presents a challenge.
During the debate, Chaithawat Tulathon, leader of the opposition Move Forward Party, criticised the budget bill, saying the government’s loan plan to offset the budget deficit of 865 billion baht almost reach the borrowing ceiling allowed by law, with only 5 billion baht that can be borrowed.
He claimed that only about 163 new projects have received budget funding for the 2025 fiscal year, which is less than the budget funds that were allocated in 2024.
Mr. Chaithawat also criticized the ruling Pheu Thai Party’s digital wallet initiative, claiming that the government has been working to promote the project regardless of its potential effects on the economy.
The government plans to draw some 152.7 billion, or about 18.9 % from the 2025 budget’s 805- billion- baht central fund to finance the scheme, he said. The government’s funding decisions to finance the scheme will put the nation at risk of financial issues. The government’s debt repayment burdens will also increase”, Mr Chaithawat said.
The government is trying to spend as little as possible in the current fiscal year, according to Jurin Laksanawisit, a member of the Democrat Party list, to use the rest to fund the wallet scheme.
Opposition leader Chaithawat Tulathon takes to the microphone to criticize the government’s outdated and misguided budget bill. Photos: Chanat Katanyu