BANGKOK- Thailand’s planned additional budget of 122 billion baht ($3.34 billion) for the 2024 fiscal year, which is to help finance a handout stimulus scheme, will go to the cabinet for approval on Tuesday, the Budget Bureau said.
The extra spending will adhere to fiscal discipline laws and will lift the budget deficit by 112 billion baht ($3.1 billion), Budget Bureau Director Chalermphol Pensoot told reporters on Monday.
The government expects revenue to increase by 10 billion baht in the fiscal year from its original projections, he said.
The current 2024 budget plan projects spending of 3.48 trillion baht, with the deficit at 693 billion baht.
The government plans a household stimulus policy worth 500 billion baht to start in the fourth quarter this year, the flagship policy of the ruling Pheu Thai party.
Economists and two former central bank governors have criticized the program, which will give 10,000 baht each to 50 million Thais to spend in their communities, as fiscally irresponsible. The government rejects that and says it is necessary to jumpstart an economy in crisis.
Prime Minister SretthaThavisin reiterated on Monday that it was necessary to stimulate Southeast Asia’s second-largest economy in the short term for higher and sustained growth.
There is also a need to prioritize fiscal spending and increase revenue collection efficiency, he posted social media platform X.
Srettha will meet with economic ministers later on Monday to find ways to lift the economy, which has lagged regional peers.
The state-planning agency last week trimmed its 2024 outlook to 2.0 percent and 3.0 percent , following last year’s 1.9 percent growth.
