BANGKOK- Thai Prime Minister Srettha Thavisin said on Monday his government will be rolling out more policies by the year’s end to lower living costs, including gradually reducing electricity prices and raising the minimum daily wage.
To counter soft demand for Thai exports and low investor confidence, Srettha and his 11-party government have promised to revive Southeast Asia’s second-biggest economy with a series of populist measures including suspending debts for farmers, raising minimum wages and providing handouts to all Thai adults via digital wallets.
“We’ve already reduced electricity prices but want to reduce more but it will take several weeks,” the premier said, adding the country’s economic situation is “not so good”.
The economy is expected to grow 2.8 percent this year, but Srettha has a target of 5 percent annual growth.
“In addition to lowering cost of living is increasing wages,” he said, adding that an announcement could be expected in November.
At a forum hosted by Thai media outlet, Thairath, Srettha, who took office last month, spoke on a range of topics including the impact of the El Niño weather phenomenon on the rice-growing country’s second harvest of the year and the need to explore alternative crops.
He said his administration wants to open up new agriculture markets in Africa and the Middle East with a focus on halal products, and expand free trade agreements with partner countries, but did not provide details.
Srettha, a real estate mogul and political newcomer, has come under fire in parliament for policies the opposition say lack clear direction. But the PM has said the policies would be fiscally responsible.
Srettha said he will attend the United Nations General Assembly in New York this week, adding his administration maintain the country’s neutral stance on the world stage.
“We have good relations with China and the United States. We have to be neutral. Not leaning one way or the other,” he said.
He also plans to meet top business executives during his US trip to draw more investment to Thailand.
Thailand’s new cabinet approved on Monday higher budget spending of 3.48 trillion baht ($97.64 billion) for fiscal year 2024, along with a larger budget deficit of 693 billion baht, the deputy finance minister said on Monday.
The bigger allocation comes as the new government, which took office last month, chalks out fresh policies to stimulate a sluggish economy weighed down by soft demand for exports and low investor confidence.
“The cabinet approved a budget of 3.48 trillion baht for fiscal year 2024 … which is line with economic conditions and revenue collection,” Deputy Finance Minister JulapunAmornvivat told reporters.
The revised budget is higher than that approved by the previous government, which projected spending of 3.35 trillion baht and a deficit of 593 billion baht.
The new budget projects a rise of 9.3 percent in spending and a drop of 0.3 percent in the budget deficit to 693 billion baht, or 3.63 percent of gross domestic product (GDP), versus the current fiscal year, the Budget Bureau said in a statement.
Investment makes up 20.6 percent of the total spending, at 717.2 billion baht. The plan is based on projected economic growth of 2.7 percent to 3.7 percent in 2024.
The 2024 budget process had been on hold until the new government took over, three months after the May election. Last week the Budget Bureau said the budget would be ready in April 2024, well after the October start of the new fiscal year.
The budget plan will go to parliament for a first reading in early January, and faces two more readings in early April before it is submitted for senate and royal approval.
The new budget is in line with current economic conditions and fiscal discipline, government spokesperson Chai Wacharonke told a briefing.
The cabinet also approved a cut of 10.3 percent in electricity bills from September, to 3.99 baht a unit, to ease the cost of living, he added.
Southeast Asia’s second-largest economy grew 1.8 percent in the April-June period on the year and 0.2 percent on the quarter, slowing sharply from the previous three months.
It is now expected to grow 2.8 percent this year, Deputy Finance Minister Krisada Chinavicharana said last week, less than the ministry’s previous projection of 3.5 percent growth.-Reuters
