© Reuters. FILE PHOTO: People stroll in a market in Bangkok, Thailand May 6, 2018. REUTERS/Soe Zeya Tun
By Kitiphong Thaichareon and Panarat Thepgumpanat
BANGKOK (Reuters) – Thailand’s new cabinet accredited on Monday higher budget spending of three.48 trillion baht ($97.64 billion) for fiscal yr 2024, together with a bigger budget deficit of 693 billion baht, the deputy finance minister mentioned on Monday.
The greater allocation comes as the brand new authorities, which took workplace final month, chalks out recent insurance policies to stimulate a sluggish economy weighed down by comfortable 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 Julapun Amornvivat informed reporters.
The revised budget is higher than that accredited by the earlier authorities, which projected spending of three.35 trillion baht and a deficit of 593 billion baht.
The new budget tasks an increase of 9.3% in spending and a drop of 0.3% within the budget deficit to 693 billion baht, or 3.63% of gross home product (GDP), versus the present fiscal yr, the Budget Bureau mentioned in a press release.
Investment makes up 20.6% of the overall spending, at 717.2 billion baht. The plan relies on projected financial progress of two.7% to 3.7% in 2024.
The 2024 budget course of had been on maintain till the brand new authorities took over, three months after the May election. Last week the Budget Bureau mentioned the budget could be prepared in April 2024, nicely after the October begin of the brand new fiscal yr.
The budget plan will go to parliament for a primary studying in early January, and faces two extra readings in early April earlier than it’s submitted for senate and royal approval.
The new budget is in step with present financial situations and fiscal self-discipline, authorities spokesperson Chai Wacharonke informed a briefing.
The cabinet additionally accredited a lower of 10.3% in electrical energy payments from September, to 3.99 baht a unit, to ease the price of dwelling, he added.
Southeast Asia’s second-largest economy grew 1.8% within the April-June interval on the yr and 0.2% on the quarter, slowing sharply from the earlier three months.
It is now anticipated to develop 2.8% this yr, Deputy Finance Minister Krisada Chinavicharana mentioned final week, lower than the ministry’s earlier projection of three.5% progress.