Thailand approves 3.75-trillion-baht budget for 2025 fiscal year

Thailand’s House of Representatives approved the 3.75-trillion-baht budget bill for the 2025 fiscal year late yesterday with 311 votes in favour, 175 against, and two abstentions.

A special 72-member House committee has been established to scrutinise the bill, consisting of 18 Cabinet representatives and 54 members from both government and opposition parties. This committee will convene its initial meeting tomorrow and has a 30-day deadline to complete its evaluation.

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai, speaking on behalf of the Cabinet, expressed gratitude to the MPs for their contributions during the three-day debate. He urged the special committee to incorporate the MPs’ recommendations into their review process.

“The government will ensure the limited budget is spent efficiently and in the best interest of the public.”

Phumtham highlighted that the spending plan aims to support economic growth.

Ahead of the vote, Move Forward Party (MFP) chief adviser Pita Limjaroenrat presented a five-point proposal to the government. His suggestions included a comprehensive plan for revenue collection and debt management, tax reform, and a transparent budget-making process.

Pita also pointed out that the chairman of the special House committee vetting the budget bill is traditionally a government representative. He proposed that the public should be encouraged to observe the committee’s work to ensure accountability and transparency.

The Cabinet approved the 3.75-trillion-baht (US$102 billion) budget for the 2025 fiscal year on May 28. This fiscal year will commence on October 1 and conclude on September 30 next year.

The budget will be funded by 2.88 trillion baht (US$ 78 billion) in tax revenue and a loan to offset a budget deficit of approximately 865 billion baht (US$23.6 billion).

A portion of the budget, amounting to 152.7 billion baht (US$4 billion), is allocated to fund the government’s 500-billion-baht (US$13.6 billion) digital wallet handout, reported Bangkok Post.

Despite a higher deficit this year, the government has set aside 908 billion baht (US$ 24.7 billion) for investment, marking a 27.9% increase from the 2024 fiscal year.