Thai PM Proposes $102 Billion Budget to Revive Economy

Thai Prime Minister Srettha Thavisin has proposed a budget of 3.753 trillion baht ($102 billion) for the 2025 fiscal year to stimulate the country's sluggish economy. The budget aims to achieve an economic growth rate of 2.5% to 3.5%, with inflation projected at 0.7% to 1.7%. The government is targeting a growth rate of at least 3% this year, following last year's 1.9% expansion, which lagged behind regional peers.

The proposed budget includes a 7.8% increase in government spending and a 24.9% rise in the budget deficit compared to the 2024 fiscal year. A significant portion of the budget, 152.7 billion baht, is allocated to a flagship 500 billion baht "digital wallet" handout scheme, which plans to distribute 10,000 baht per person to 50 million Thais. This proposal is currently under debate by lawmakers in a three-day session.