Thai Prime Minister Srettha Thavisin has put forward a budget of 3.753 trillion baht (S$138 billion) for the fiscal year 2025, initiating a three-day debate among lawmakers. The proposed budget aims to revitalize the country's sluggish economy and unleash its full growth potential, as stated by Srettha in his address to the House of Representatives.
The forecast for Southeast Asia's second-largest economy anticipates growth between 2.5 percent and 3.5 percent in 2025, alongside projected inflation ranging from 0.7 percent to 1.7 percent. Officials disclosed that the government aims to achieve a minimum growth rate of 3 percent this year, aiming to surpass last year's 1.9 percent expansion, which fell behind neighboring countries in the region. “Deficit budgeting is important and necessary to stimulate a slow economy to grow significantly”, Srettha said.
According to the 2025 budget papers, government spending is slated to increase by 7.8 percent, accompanied by a significant rise of 24.9 percent in the budget deficit, reaching 865.7 billion baht compared to the previous fiscal year. Earlier announcements from the government indicated that 152.7 billion baht of the 2025 budget will be allocated towards funding a flagship "digital wallet" initiative worth 500 billion baht.
The rollout of a scheme offering 10,000 baht per person to 50 million Thais for local spending has been postponed to the fourth quarter of this year due to financial challenges. The budget deliberations coincide with Prime Minister Srettha's Constitutional Court battle, which could result in his removal from office. The case, initiated by 40 military-appointed senators, revolves around a cabinet appointment made by Srettha, though the prime minister has refuted any allegations of misconduct.