Thailand’s 157 billion baht stimulus budget pending approval
Ministries eye stimulus funds for exports, SME boosts, and tourism amid budget allocation scrutiny
The government’s economic stimulus budget of 157 billion baht is pending final approval this month, while funding requests from various ministries have exceeded 400 billion baht. There is concern over transparency and the economic impact of these proposals, with fears that some projects might serve electoral or specific group interests.
The Commerce Ministry requested a budget of 3 billion baht, but the proposal faced cuts during the initial review. Approved projects from the Department of Foreign Trade (DFT) and the Department of International Trade Promotion (DITP) await final budget allocations.
The DFT’s approved projects, totalling 27 million baht, aim to address US tariff impacts, supporting entrepreneurs with product origin certification and hiring legal experts to protect Thai products from US countervailing duties.
The DITP plans to allocate part of its budget to help exporters explore new markets, mitigating risks from US policies.
Poj Aramwattananont, Chairman of the Thai Chamber of Commerce, endorsed the ministry’s measures to support exports, which constitute 60% of Thailand’s GDP. He emphasised the importance of sustaining export levels to prevent negative impacts on the economy.
Poj also suggested increased funding for the tourism industry to meet the target of 35 million foreign visitors this year, addressing safety perceptions and adapting products to changing demands.
Boosting SMEs
The Industry Ministry’s plan to request additional funding for small and medium-sized enterprises (SMEs) received backing from Sangchai Theerakulwanich, President of the Federation of Thai SMEs. The ministry seeks 1 billion baht from the stimulus budget to boost SME productivity.
Industry Minister Akanat Promphan aims to improve SMEs’ production technology, offering financial aid to 10,000 enterprises. Akanat also plans to support efforts against illegal foreign businesses impacting local manufacturers.
The Digital Economy and Society Ministry proposed upgrading its Anti-Online Crime Operation Centre as part of its projects. Thailand Post requested funding to enhance the Thailand PostMart channel to aid SMEs in online sales.
The Tourism Authority of Thailand (TAT) plans to use 2.5 billion baht for its “Entertainment Hub” project, supporting international concerts and music festivals.
Unlike other ministries, the Energy Ministry has not requested funds for new infrastructure projects under the stimulus measures, as shared by an energy official in a statement to the Bangkok Post. State-owned agencies, the Electricity Generating Authority of Thailand (EGAT) and PTT Plc, will continue projects under their own budgets.
The stimulus budget is intended for employment support, infrastructure and community development, tourism promotion, and technology use in economic development. The Tourism and Sports Ministry has also proposed building and redeveloping public toilets at tourist sites.
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