According to Deputy Finance Minister Julapun Amornvivat, Thailand’s new cabinet approved a budget plan on Monday that calls for increased spending of 3.48 trillion baht ($97.64 billion) and a greater budget deficit of 693 billion baht for the fiscal year 2024.
The increase in spending comes as the new administration works to boost a slowing economy that is being weighed down by weak foreign demand for Thai goods and poor investor confidence.
The amended budget exceeds the previous administration’s budget, which called for spending 3.35 trillion baht and a 593 billion baht deficit.
The second-largest economy in Southeast Asia experienced a severe slowdown from the previous three months, growing just 1.8% on an annualized basis and 0.2% on a quarterly basis from April to June.
As opposed to the ministry’s earlier forecast of 3.5% growth, Deputy Finance Minister Krisada Chinavicharana indicated on September 8 that the GDP is now anticipated to increase by 2.8% this year.