Bangkok: The Treasury has earmarked 500 billion baht to stimulate the economy, including adjustments to the 2016 budget, state banks lending, and borrowing within the system, with the aim of adjusting the economic structure. The Permanent Secretary of the Treasury remains unconcerned despite public debt rising to 80% of GDP.
According to Thai News Agency, Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, addressed the 150th anniversary of the 'Royal Treasury in the Royal Treasury' ceremony, highlighting the economic slowdown due to the global trade war. The International Monetary Fund (IMF) and other agencies have revised Thailand's projected GDP growth to 1.8% in 2025, down from an initial 2.5-3%. To counter this, the Ministry of Finance anticipates a GDP growth of 3% in the first quarter of 2025, necessitating urgent economic measures, including a 500 billion baht injection.
The Ministry of Finance, alongside the National Economic and Social Development Board and other agencies, is studying appropriate measures to leverage this opportunity to restructure the economy. The focus is on enhancing purchasing power to stimulate consumption and investing in large projects that meet the needs of the people, SMEs, and the private sector. These efforts aim to create investment opportunities, generate jobs, and compensate for the export income affected by the global economic slowdown. The government believes that with a clear investment plan, Thailand's favorable location and strong economic fundamentals will attract foreign investment.
Mr. Laworn Sangsanit, Permanent Secretary of the Ministry of Finance, stated that the Ministry and the National Economic and Social Development Board are urgently reviewing measures for economic recovery through the 500 billion baht plan. This includes adjusting the 2025/2026 budget plan, utilizing state banks to offer low-interest loans, and sourcing funds within the country where liquidity remains high. Despite the increase in public debt from 64% to 80% of GDP, Mr. Laworn emphasized that the focus should be on the plan for debt repayment and effective utilization of the funds. He pointed out that many countries manage high public debt successfully, looking beyond mere percentages to strategic financial planning.