Bangkok: The Economic Stimulus Board has decided to withdraw 26 billion baht from the central emergency budget, directing efforts towards enhancing border economies in light of tariff impacts and other emergencies.

According to Thai News Agency, Deputy Prime Minister and Minister of Interior, acting Prime Minister Phumtham Wechayachai, chaired a meeting of the Economic Stimulus Policy Committee (ESPC) to address the allocation of funds. Previously, the government had allocated 115 billion baht in the first round and 18 billion baht in the second round for stimulus measures. Of this, 10 billion baht has been designated for the National Competitiveness Enhancement Fund for Targeted Industries, while 8.488 billion baht is allocated to the Student Loan Fund (SLF).

Deputy Prime Minister and Finance Minister Pichai Chunhavajira noted that some agencies were unable to complete procurements within the stipulated timeframe, leading to the reallocation of the remaining 26 billion baht back to the central emergency reserve. This reserve is intended for essential uses, such as revitalizing the Thai-Cambodian economy and mitigating the effects of the 19% US import tariff on certain items. Agencies wishing to utilize this budget must complete procurement processes by September 30th, with oversight by the Budget Bureau.

The tariffs imposed by the US have impacted retail customers, who are clients of the Bank for Agriculture and Agricultural Cooperatives (BAAC) and the Government Savings Bank (GSB). Both banks may seek additional support measures. The Thai government is also preparing for negotiations with the US regarding local content requirements, which may ease some tariff impacts. Rising domestic product prices in the US, partly due to these tariffs, have affected items such as bananas from Thailand, prompting the need for detailed negotiations.