Bangkok: The Cabinet has approved a 115 billion baht economic stimulus budget, aiming to boost the GDP by 0.4 percent and accelerate budget disbursements for the fourth quarter, with the Northeast region receiving the initial allocation. Ministers have been directed to ensure transparency and verification in investment control, with an additional 40 billion baht potentially available for future consideration.
According to Thai News Agency, Deputy Prime Minister and Finance Minister Pichai Chunhavajira, alongside executives from various agencies, announced the Cabinet’s approval of the economic driving plan within a 157 billion baht framework. The initial central budget of 115 billion baht was sanctioned as a response to the global economic impacts of the trade war and import taxes imposed by the “Trump” administration, which affected economies worldwide. The Economic Stimulus Policy Committee has thus allocated the central budget across 50 units and 481 projects, totaling 8,939 items, to stimulate short-term economic growth with long-term benefits.
The plan is expected to reduce costs for entrepreneurs by distributing the budget nationwide, with the Northeast receiving the largest share due to its low income per capita. Projects ready for implementation will receive up to 500,000 baht each, with procurement and contract signing to be expedited by September 2025, and the budget to be utilized until September 2026. The budget is projected to enter the system in the fourth quarter of 2025, with further approval possible for over 40 billion baht in remaining funds.
Mr. Chulaphan Amornvivat, Deputy Minister of Finance, stated that the Prime Minister has emphasized transparent and verifiable use of investment funds. A subcommittee will evaluate and monitor the results, reporting to the Economic Stimulus Board led by the Prime Minister. Any illegal projects will be immediately terminated by the responsible minister. The Budget Bureau will strictly oversee disbursement in accordance with the law, aiming for the stimulus budget to meet government objectives.
The approved projects include infrastructure, tourism, export impact mitigation, and community economics. Infrastructure will receive 85,000 million baht, divided into water and transportation projects. The tourism sector will benefit from 420 projects with a budget of 10,053 million baht, aimed at developing attractions and facilities in secondary cities. Export impact mitigation includes 10 projects worth 11,122 million baht, focusing on agricultural and labor support. Community economics will see 17 projects worth 9,201 million baht, targeting village and urban community development, human capital in education, and community economic growth.
The stimulus program aims to distribute funds to regions with low per capita income, providing a higher budget proportion to areas like the Northeast compared to wealthier regions such as Bangkok and the Eastern areas. The government anticipates creating no less than 7.4 million jobs, with an employment budget of 34,008 million baht, which comprises 30 percent of the total budget. This investment is expected to foster infrastructure development, job creation, income distribution, and economic circulation, ultimately expanding the economy by 0.4 percent and enhancing national competitiveness amid economic uncertainties.