The Upper House is gearing up to conduct all three readings of the 3.75-trillion-baht budget bill for the 2025 fiscal year this Monday, with the bill’s approval potentially on the horizon the very same day, reveals Deputy Senate Speaker Gen Kriangkrai Srirak. Thanks to a meticulously planned expedition, the Senate had earlier set up a special committee, allowing for simultaneous deliberation while the bill was under scrutiny in the Lower House from Tuesday to Thursday this week.
This dual-track deliberation, lauded by Gen Kriangkrai, significantly boosts the chances that the Senate’s planned one-day examination of the bill will proceed smoothly and finish without a hitch. Late on Thursday, the House of Representatives gave the green light to the budget bill, empowering newly appointed Prime Minister Paetongtarn Shinawatra to amplify state spending and kickstart an economic recovery that’s still in its early stages.
The budget bill outlines a 4.2% uptick in government spending, reflecting an increase from the revised outlay for the 2025 fiscal year starting this October. This proposal was met with approval from 309 lawmakers in its third and final reading within the 500-member House of Representatives on Thursday, while 155 legislators voted against it after an engaging three-day debate.
Should the Senate give its stamp of approval, the new budget law will come into effect immediately upon being published in the Royal Gazette. The expenditure plan includes a provision to partly fund the coalition government’s contentious cash handout scheme aimed at invigorating consumption and manufacturing.
Premier Paetongtarn faces the formidable task of reviving Southeast Asia’s second-largest economy, currently hampered by near-record levels of household debt, stagnant exports, and a manufacturing sector weakened by inexpensive imports, mainly from China. She has promised to pull the economy out of its “crisis” state, with details of her government’s policies expected to be unveiled in parliament next week.
Additionally, her administration plans to revisit the much-discussed “digital wallet” program, which pledges to give 10,000 baht to nearly all adult Thais. This program aims to propel economic growth to an ambitious 5%, a stark contrast to the sub-2% average growth rate seen for nearly a decade under military-backed governance.
Senator Premsak Piayura, serving as the deputy chairman of the Senate’s special committee tasked with vetting the budget bill, noted on Friday that the committee had already completed its review. The findings have been forwarded to the Senate Secretariat, along with a request to convene a Senate meeting on Monday to deliberate all three readings.
I support Paetongtarn’s budget. The economy needs a boost, and this is a step in the right direction.
But isn’t it just another way to increase the national debt? Throwing money at the problem won’t fix structural issues.
Sometimes you need to spend to make money. If the investments pay off, the economy can grow enough to justify the spending.
Exactly! A stimulus can kickstart everything from manufacturing to consumer spending. We can’t just cut our way to prosperity.
This cash handout scheme is just a gimmick to win votes. It’s unsustainable!
Even if it’s a gimmick, it’s putting money in people’s hands, which they can spend on essentials. That could help the economy.
Sure, but what’s the long-term plan? We can’t keep giving out money and hoping for the best.
Exactly, JohnnyG. We need sustainable growth, not short-term fixes that create more problems down the line.
It’ll be interesting to see how the manufacturing sector reacts. Are we ready to compete with China?
We definitely need better policies to protect our manufacturing. Cheap imports have been killing local industries.
Protectionism? That sounds like a recipe for higher prices and less competition.
Not necessarily, David. Smart regulations can create a level playing field without outright bans or tariffs.
The digital wallet program is nonsense. How do you plan to pay for this?
I’d rather see investments in education and healthcare. Long-term benefits over short-term gains.
Watch how this will wreck the budget. We’ve seen this movie before.
Honestly, any significant economic reforms would have been better under military governance.
Are you serious? Military governance stifled growth and innovation. Paetongtarn deserves a chance.
Military governance provided stability. That’s crucial for long-term economic planning.
We’ve had nearly a decade of ‘stability’ with minimal growth. It’s time for new ideas.
The Senate just rubber-stamps whatever the House decides. What’s the point of even having them?
Actually, the Senate’s role is to provide a check and balance. They review bills critically before approval.
But do they really? This whole thing seems pre-determined.
4.2% more spending sounds like a huge increase. Do we have enough revenue to cover it?
Governments can run deficits if the spending leads to economic growth. It’s a risk, though.
Not all deficits are bad. The key is where the money goes and how it stimulates the economy.
I just hope this budget addresses student debt. It’s crippling young people.
Good point! Young people are the future, but they can’t contribute if they’re buried in debt.
If we keep bailing out students, what incentive is there to manage debt wisely?
How can we expect to see 5% growth with the global economy slowing down?
It’s ambitious, but not impossible. Strategic investments can help us outpace the global economy.
Sure, but we need to be realistic too. Overpromising and underdelivering won’t help us.
Is there enough oversight on how this money will be spent?
Probably not. Corruption is a big issue, and large budgets often make it worse.
Exactly, without accountability, this could just be another wasteful exercise.
Remember, folks, every baht spent needs to generate more baht. Otherwise, it’s just debt.