Thai Lawmakers Back PM Srettha’s $3.4 Billion Spending Plan
(Bloomberg) -- Thai lawmakers backed Prime Minister Srettha Thavisin’s plan for an additional 122 billion baht ($3.4 billion) budget spending to fund his government’s flagship cash handout plan to stimulate the sluggish economy.
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The supplementary bill to lift the budget outlay for the fiscal year ending Sept. 30 was backed by 296 lawmakers in its first reading in the 500-member House of Representatives late Wednesday. A total of 163 lawmakers voted against the bill following a debate that lasted about 10 hours.
The bill will now be sent to different house committees before being returned to the chamber for two more readings.
The extra budget will enable Srettha’s administration to start implementing its one-time plan to give away 10,000 baht to almost all Thai adults to spur consumption and investment. The estimated 500 billion baht stimulus is the centerpiece of Srettha’s strategy to reignite Southeast Asia’s second-largest economy that’s been stuck at an average growth rate of less than 2% for the past decade.
“The government needs to spend money on its urgent policies to help boost the economy” and it can’t wait for the funding for the next fiscal year, the premier said in his speech at the parliament on Wednesday to shore up support for the budget.
Srettha’s remarks came as Thailand sought to shield its key tourism sector from any fallout from the deaths of six foreigners at a luxury hotel in Bangkok this week. Tourism accounts for about a fifth of total jobs and some 12% of the $500 billion economy.
Beginning next month, Thailand will begin enrolling citizens eligible for the so-called digital wallet program, putting the government on course to start distributing the cash in the fourth quarter.
The additional budget is based on economic growth projections of of 2%-3% this year with 0.1%-1.1% average inflation. If approved, the supplementary budget will take effect in August.
The finance ministry estimates that no more than 90% of 50 million people eligible for the payout will sign up for the program, reducing the funding requirement to 450 billion baht.
The lower house of parliament has already voted in support of a $102 billion budget for the fiscal year starting Oct. 1 that seeks to ramp up state spending to drive economic growth.
(Recasts with parliament vote.)
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