Thailand advances with $13.9b stimulus

Thailand’s government is pushing forward with a 500 billion baht ($13.9 billion) stimulus package, which may necessitate additional borrowing, Reuters reported on Wednesday, citing Deputy Finance Minister Julapun Amornvivat.

Speaking in parliament during a three-day debate on the 3.48 trillion baht ($96.5 billion) budget bill for fiscal 2024, Amornvivat stated that the government might need to seek parliamentary approval for a loan to fund the project.

The scheme, designed to boost Southeast Asia’s second-largest economy, involves transferring 10,000 baht to 50 million Thai citizens over six months.

However, concerns about its funding have been raised, with some experts deeming it fiscally irresponsible.

Amornvivat also expressed the government’s intention to achieve a balanced budget in due course.

The 2024 budget, which ends in September, aims for a 9.3 per cent increase in spending and a 0.3 per cent reduction in the budget deficit to 693 billion baht from the previous year.

Following the budget debate, further approval from the Senate and the King is required.

Despite delays due to a political stalemate after the May election, the government expects the budget to be ready for implementation by early next month. A new government was established in August.