PM urges swift budget action

Prime Minister Paetongtarn Shinawatra instructed government agencies to expedite the investment budget for fiscal year 2025 to stimulate the economy.
Charing the meeting of senior officials at the Finance Ministry on Monday, Ms Paetongtarn said the country faced a myriad of problems that accumulated over the years along with new challenges.
She said the government must resolve entrenched structural issues, build resilience, and promote growth while noting that public spending is an effective tool for stimulating private spending and consumption.
The premier added that the 900-billion-baht investment fund represents 5% of the country’s GDP, so its disbursement would generate economic activities and income and help achieve the targeted GDP growth.
Finance permanent secretary Lavaron Sangsnit said the government aims to disburse at least 80% of the investment budget. He said speeding up fund disbursement would help deliver that target without the need for additional measures.
Mr Lavaron said the first month of the 2025 fiscal year in October saw above-average disbursement and urged state agencies to maintain the momentum.
The fiscal 2025 budget of 3.75 trillion baht took effect on Oct 1, with the investment budget of 900 billion baht accounting for 24.2% of the total expenditure.
Meanwhile, the northern office of the Bank of Thailand said on Monday that the economic conditions and consumption in the final quarter of this year are projected to improve due to the onset of the high tourism season and the government’s stimulus measures.
The industrial manufacturing sector is also expected to improve via increased demand from foreign partners and a rise in consumer demand during the festive season. However, farmers’ income is forecast to decline, with consumer spending squeezed by the higher cost of living and severe flooding in the region.
The recovery in the tourism sector is noted, while a fall in consumer spending, rapid changes in the market, and geopolitics are marked as key challenges for the region.
Recent flooding caused extensive damage in Chiang Mai, Chiang Rai, Phayao, Phrae, Nan, Lampang, and Lamphun. The damage is estimated to be at least 14 billion baht, which is forecast to knock 0.7% off the gross regional product (GRP).