Prime Minister Paetongtarn Shinawatra has called for urgent action on the investment budget for the fiscal year 2025 to boost the economy. During a meeting at the Finance Ministry, she highlighted the need to address long-standing issues and promote growth through public spending. The 900-billion-baht investment fund is a significant portion of the country’s GDP and is expected to stimulate economic activities and income, ultimately leading to targeted GDP growth.
Finance permanent secretary Lavaron Sangsnit emphasized the importance of expediting the disbursement of the investment budget to meet the government’s target. The first month of the fiscal year saw above-average fund disbursement, and state agencies are urged to maintain this momentum. The total budget for fiscal year 2025 is 3.75 trillion baht, with the investment budget accounting for a significant portion of the expenditure.
In other economic news, the Bank of Thailand’s northern office predicts an improvement in economic conditions and consumption in the final quarter of the year. This is attributed to the high tourism season and government stimulus measures. The industrial manufacturing sector is also expected to benefit from increased demand from foreign partners and higher consumer spending during the festive season. However, farmers’ income may decline, and consumer spending could be affected by the rising cost of living and recent flooding in the region.
The tourism sector is showing signs of recovery, but challenges such as fluctuating consumer spending, market volatility, and geopolitical issues remain. Severe flooding in several provinces has caused significant damage, estimated at 14 billion baht, and is expected to impact the gross regional product. Despite these challenges, the government’s focus on stimulating the economy through public spending and investment is vital for driving growth and resilience in the face of economic uncertainties.
