Image: Reuters Berita 24 English - Thailand's government recommended more spending in the 2023 draft budget bill, amounting to 3.185 tri...
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| Image: Reuters |
The measure, which is currently being considered in parliament, calls for a 2.74 percent increase in spending and a 0.7 percent reduction in the deficit to 695 billion baht, or approximately 3.9 percent of GDP (GDP).
Increased domestic demand and a resurgence in tourism are expected to help Southeast Asia's second-largest economy develop 3.5 percent to 4.5 percent this year and 3.2 percent to 4.2 percent next year, according to budget planners.
However, due to global volatility, the state planning office has forecasted reduced growth of 2.5 percent to 3.5 percent this year.
"Under such circumstances, the government must pursue an expansionary fiscal policy to aid economic recovery," Prime Minister Prayuth Chan-ocha told the House of Representatives, which will debate the first reading through Thursday.
Revenues are likely to progressively grow in the 2023 fiscal year as the economy recovers following the relaxation of coronavirus restrictions, he noted.
Failure to pass the budget bill on its first reading might compel Prayuth to quit or dissolve parliament, jeopardizing his government.
If passed, the bill would go to the Senate for two more readings in August before being handed to the King.
(1 dollar = 34.16 baht)
