Thailand’s US$110 billion annual budget gets Senate approval

THAILAND’S annual budget cleared the final hurdle, with the Senate approving the US$110 billion spending plan that paves the way for new Prime Minister Paetongtarn Shinawatra to roll out fiscal stimulus to jumpstart the nation’s economy.

The budget Bill, which proposes a 4.2 per cent increase in state spending from Oct 1, was backed by 174 senators in the 200-member Senate on Monday (Sep 9). The lower house passed the Bill last week, and it now requires a royal endorsement. 

The budget outlay – equivalent to about a fifth of the nation’s US$500 billion economy – will be a key tool for Paetongtarn to tackle multiple economic challenges, ranging from near-record household debt to an ageing society. Paetongtarn, 38, is due to announce her government’s policy priorities in parliament on Sept 12.

Paetongtarn, the youngest daughter of influential former leader Thaksin Shinawatra, was elected by parliament last month after her predecessor Srettha Thavisin was dismissed by a court over an ethical violation. Her coalition government will expedite a debt restructuring to tackle chronic debt burden facing households and small businesses and accelerate economic stimulus measures, according to a draft of the policy statement. BLOOMBERG