Cabinet/ 2025 fiscal budget

Chatrudee Theparat

The 2025 fiscal budget with an additional deficit of 152.7 billion baht is approved.

The cabinet endorsed an additional deficit of 152.7 billion bah in the 2025 fiscal budget in a bid to pave the way for the government to allocate a budget for a stimulus package at the end of this year.

Deputy Finance Minister Julapun Amornvivat said the cabinet approved a deficit budget of 865 billion baht in the 2025 fiscal budget, up 152.7 billion baht from the previous deficit of 713 billion baht.

However he said the government could not increase an expenditure budget in the 2025 fiscal budget because of its minimum ceiling of the expense.

According to government spokesman, Chai Wacharonke said the cabinet approved a revision of the Monetary and Fiscal Policy Committee’s medium-term fiscal policy framework (2025-2028) in order to pave the way for the government to implement a stimulus package.

He said the Thai economy has many risk factors this year including a slowdown in economic growth since the fourth quarter of last year and a slowdown trend is continued to this year with only projected 2.7% while household debt is on the uptrend.

Mr Chai said the framework of 2025 fiscal budget was revised to 3.75 trillion baht of expenditure from the previous 3.6 trillion baht, and 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, it is an expenditure of 3.74 trillion baht with 3.04 trillion baht of revenue collection, and 67.53 % of the public debt to GDP.

In the 2027 fiscal budget, it is an expenditure of 3.89 trillion baht with 3.2 trillion baht of revenue collection, and 67.57% of the public debt to GDP.

In the 2028 fiscal budget, it is an expenditure of 4.07 trillion baht with 3.39 trillion baht of revenue collection. The public debt to GDP was 67.05 %.

The meeting among four economic agencies will be organized within this week in order to settle for the 2025 fiscal budget. They include the National Economic and Social Development Council (NESDC), the Bank of Thailand, the Budget Bureau, and the Fiscal Policy Office.

“Once the government implements the stimulus package, the Thai economy is projected to grow by 3.3 % in 2025-2026, and 3.2% in 2027-2028.”

The government needs 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 Thai people, likely in the fourth quarter.

Prime Minister Srettha Thavisin

The Digital Wallet Policy Committee chaired by PM Srettha last week agreed to provide three options of sources of funding 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.