The cabinet yesterday approved an additional 152.7 billion baht of a 2025 fiscal budget in order to pave the way for the government to allocate a budget for a stimulus package.
Deputy Finance Minister Julapun Amornvivat said the 2025 fiscal budget would be a deficit budget of 865 billion baht, up 152.7 billion baht from the previous 713 billion baht.
However, the government could not expand an expenditure budget in the 2025 fiscal budget because of its minimum ceiling of the expense.
Government spokesman Chai Wacharonke said the cabinet also endorsed an improvement the Monetary and Fiscal Policy Committee’s medium-term fiscal policy framework (2025-2028) in order to pave the way for the government to stimulate the economy because risks factors of a slowdown economy since the fourth quarter last year and a slowdown trend was continued to this year of a projection only 2.7% of Thai economy while household debt also was quite high rate.
The framework of 2025 fiscal budget was 3.75 trillion baht of expenditure, 2.88 trillion baht of revenue collection while the public debt to GDP was 66.93%,up from 65% in 2024.
In the 2026 fiscal budget, an expenditure of 3.74 trillion baht and 3.04 trillion baht of revenue while 67.53 % of the public debt to GDP.
In the 2027 fiscal budget, an expenditure of 3.89 trillion baht and 3.2 trillion baht of revenue collection and 67.57% of the public debt to GDP.
In the 2028 fiscal budget, an expenditure of 4.07 trillion baht and 3.39 trillion baht of revenue collection. The public debt to GDP was 67.05 %.
The meeting among four economic agencies later will be organized within this week including the Bank of Thailand, the Budget Bureau, the Fiscal Policy Office and the National Economic and Social Development Council (NESDC) in order to settle for the 2025 fiscal budget.
Mr Chai said once the government implements the stimulus package, the Thai economy is projected to grow more than 3% ranging from 2025.
The government needed to conduct an additional deficit budget in 2025 in order to provide funds for a 500-billion baht digital wallet scheme. The scheme would transfer 10,000 baht to 50 million Thais in the fourth quarter this year.
Last week, the Digital Wallet Policy Committee chaired by PM Srettha agreed to provide three options of funding source for the 500-billion baht handout scheme, including the 2024 and 2025 fiscal budget, drafting a borrowing bill, or both borrowings and the fiscal budget. Related agencies are required to settle the source of funds for the handout scheme before the meeting of the committee on April 10.
