Govt to use over THB300 billion to stimulate economy
Funds to come from the Additional Budget Expenditure Act, the central budget for emergency expenses and the 2025 budget
The government under new Prime Minister Paetongtarn Shinawatra is preparing to use more than 300 billion baht to stimulate the country’s sluggish economy, a Government House source said on Tuesday.
The budget will come from three main sources:
1. The Additional Budget Expenditure Act for fiscal year 2024, which allocates 122 billion baht to funding the government’s handout under digital wallet scheme. The act has passed Parliament readings and is now waiting to be enacted.
2. The draft of the fiscal 2025 budget, from which the previous government earmarked 152 billion baht for economic stimulation. This portion of the budget was originally reserved for the digital wallet scheme, but could be used to fund other projects if the government decides to adjust the scheme’s scope to use less than the proposed 450 billion baht.
3. The central budget for emergency expenses under the fiscal 2024 budget, which the previous government had earmarked at 40 to 50 billion baht. However, this portion of the budget must be approved and disbursed within September, before the fiscal year ends.
Regarding the rumour that the new PM might consider changing the handout method of the digital wallet scheme to cash, Chalermphol Pensoot, director-general of the Budget Bureau, said on Tuesday that it is possible to do so, adding that changing the disbursement method does not change the original objective of the scheme, which is to stimulate the economy by increasing domestic spending.
Chalermphol added that the preparation of fiscal 2025 budget is currently in the 2nd and 3rd reading phase by the House ad-hoc committee, and should be ready for enactment before October 1, as scheduled.
Even if the formation of a new cabinet is not completed by the end of this month, the draft of the 2025 budget should not be affected, he added.
Paetongtarn said on Tuesday that the Pheu Thai list of Cabinet nominees will not be finalised in the next couple of days, adding that the ministerial quota will be discussed and qualifications carefully reviewed for each candidate before anything is finalised.
