Analytics Asia Economy World

Thailand’s Annual Budget Secures Senate Approval, Cleared for Economic Stimulus

Thailand’s Annual Budget Secures Senate Approval, Cleared for Economic Stimulus
  • PublishedSeptember 9, 2024

Thailand’s annual budget has successfully cleared its final legislative hurdle, with the Senate approving a 3.75 trillion baht ($110 billion) spending plan, Bloomberg reports.

This approval paves the way for newly elected Prime Minister Paetongtarn Shinawatra to implement fiscal stimulus measures aimed at invigorating the nation’s economy.

The budget bill, which outlines a 4.2% increase in state spending starting from October 1, received the backing of 174 senators in the 200-member Senate on Monday. The lower house had already passed the bill last week, and it now awaits royal endorsement.

The budget, accounting for roughly one-fifth of Thailand’s $500 billion economy, will serve as a crucial instrument for Paetongtarn in addressing the country’s various economic challenges, including near-record household debt and an aging society. The 38-year-old Prime Minister is expected to present her government’s policy priorities in parliament on September 12.

In her policy statement draft, Paetongtarn, the youngest daughter of former influential leader Thaksin Shinawatra, outlines plans to expedite debt restructuring to alleviate the chronic debt burdens plaguing households and small businesses. Additionally, the coalition government aims to accelerate economic stimulus measures to drive growth.

Paetongtarn was elected by parliament last month following the dismissal of her predecessor, Srettha Thavisin, by a court over an ethical violation. Her administration is set to prioritize tackling the nation’s $474 billion household debt and other key economic issues.​