Budget for govt banks cut by THB35bn to fund stimulus measures
News comes ahead of second reading of 2025 budget bill as govt scrambles to fund 450-billion-baht digital wallet handout
The House budget committee has cut proposed spending of five government banks by 35 billion baht to fund economic stimulus measures, caretaker Deputy Finance Minister Julapun Amornvivat said on Tuesday.
Julapun, deputy president of the ad hoc committee, was presenting its work to MPs on Tuesday morning as they began the second reading of the 2025 budget bill.
He reported that between June 26 and August 28, the panel had vetted proposed spending of 2,987 government agencies. The panel had trimmed the spending proposals by 7.824 billion baht in line with the current economic situation, worthiness of projects, potential of disbursement, and readiness of agencies to implement proposed projects.
The resulting surplus budget was transferred to other agencies considered to be in greater need of the funds, Julapun said.
They included:
- The central fund for emergency spending
- The Social Development and Human Security Ministry, for the monthly elderly allowance
- The Labour Ministry, for payment to the Social Security Fund
- The Education Ministry, for providing electricity to remote schools
- The Public Health Ministry, for hospital construction
- King Prajadhipok’s Institute, for data centre upgrades
- Parliament, the Court of Justice, and independent organisations
- Student Loan Fund
The fiscal 2025 budget bill proposes government spending of 3.75 trillion baht.
Julapun said the panel made two significant changes to the bill.
First, it cut proposed spending of the Small and Medium Enterprise Development Bank of Thailand, the Bank for Agriculture and Agricultural Cooperatives, the Export-Import Bank of Thailand, the Government Housing Bank and the Government Savings Bank by 35 billion baht and transferred this amount to the central emergency fund.
The emergency fund would use the windfall to revive the economy, he said.
Second, the budget panel transferred 501 million baht from the Finance Ministry’s human resources budget to the Local Administration Department under the Interior Ministry. The money will be used to transfer staff under the Public Health Ministry to 47 hospitals run by tambon administrative organisations around the country.
The government is looking for ways to fund its 450-billion-baht ($13.1 billion) digital wallet scheme aimed at stimulating the economy with 10,000-baht handouts to almost all Thai adults.
