BANGKOK, Thailand – The Economic Stimulus Policy Board, chaired by the Prime Minister, has approved a central budget allocation of 110 billion baht from a total budget framework of 157 billion baht. The fund aims to stimulate Thailand’s economic growth with an expected increase in GDP of approximately 0.4 percent.
Deputy Prime Minister and Finance Minister Pichai Chunhawanich announced that the board’s approval will be submitted to the Cabinet next Tuesday for final endorsement. The projects cover multiple sectors to enhance Thailand’s competitiveness both in the short and long term. All government agencies involved are instructed to expedite contract signing and procurement processes, with contracts expected to be completed by September 2025. Budget spending is planned to commence in early October.
Prime Minister emphasized strict compliance with laws and regulations during the implementation of these projects. Project owners must closely monitor expenditures to ensure funds are used solely for their intended purposes. Any misuse of funds will result in immediate suspension of the projects. An oversight subcommittee will be established to monitor and evaluate investments to ensure transparency and accountability across all agencies.
The approved projects were selected from proposals submitted by various government units, many of which have been thoroughly studied and are ready for immediate investment. The investment funds will be distributed across all districts nationwide, with particular focus on developing lower-income provinces. The Bangkok metropolitan area and surrounding provinces will receive a relatively smaller portion of the budget.
Key Focus Areas and Budget Allocation
The Economic Stimulus Board allocated significant funding for water system development and transportation infrastructure. Water-related projects will include improvements to drinking water systems, flood prevention, drought relief, and the application of new technology to agricultural water management. Transportation projects will focus on upgrading and connecting primary and secondary tourism routes, enhancing tourist convenience, and improving safety by repairing damaged roads and problematic intersections in local communities.
-Water systems and transportation combined receive approximately 30% of the total budget.
-Tourism development is allocated about 10%.
-Remaining funds support other projects, including mitigation of impacts from international trade policies such as those stemming from the U.S. “Trump” tax reforms.
The current round of economic stimulus is expected to create between 6 and 7 million jobs and contribute approximately 0.4% to the nation’s GDP growth. The government plans to continue these investment efforts through budgets from 2026 to 2028, aiming to restructure the country’s economy comprehensively.
Remaining Budget and Local Government Projects
About 40 billion baht of the total framework remains unallocated for now and will be considered in future sessions. The budget for local administrative organizations, amounting to 40 billion baht, was not included in this round due to incomplete proposals and overlapping projects submitted by some ministries.
Detailed Budget Breakdown
The total approved budget of approximately 115.4 billion baht is divided into the following sectors:
- Infrastructure Development: 85 billion baht (73.7%)
-Water system development: 39.1 billion baht (33.9%)
-Transportation infrastructure: 45.9 billion baht (39.8%)
- Tourism Development: 10.05 billion baht (8.7%)
- Export and Productivity Enhancement: 11.1 billion baht (9.6%)
-Agriculture: 160 million baht (0.1%)
-Labor: 10 billion baht (8.7%)
-Digital sector: 962 million baht (0.8%)
- Community Economy and Other Sectors: 9.2 billion baht (8%)
-Village funds: 4 billion baht (3.5%)
-Community economic development: 1.56 billion baht (1.3%)
-Human capital and education: 3.64 billion baht (3.2%)
This stimulus package reflects the government’s commitment to balanced regional development, improving infrastructure and services, supporting tourism, enhancing productivity, and strengthening community economies. The plan is designed to address both immediate economic needs and long-term growth sustainability across Thailand. (TNA)
