Thai PM proposes 115 bln USD budget to parliament to boost economy
BANGKOK, May 28 (Xinhua) -- Thai Prime Minister Paetongtarn Shinawatra on Wednesday proposed the government's 3.78 trillion baht (115.66 billion U.S. dollars) budget for the 2026 fiscal year to parliament, aiming to shore up a sluggish economy amid global trade tensions.
The draft bill projects a 0.7 percent increase in expenditure and a budget deficit of 860 billion baht (about 26.31 billion dollars), marking a 0.7 percent decline from fiscal 2025 that ends in September.
Paetongtarn emphasized that the budget reflects her administration's commitment to driving sustainable economic recovery, enhancing national infrastructure, strengthening social equality, and maintaining fiscal discipline.
In light of revenue limitations and the challenging global landscape, the government has adopted a deficit budget policy, with key focuses on strengthening national security, enhancing competitiveness, and developing human capital, she told a parliamentary session.
According to the budget plan, Thailand's gross domestic product growth for both 2025 and 2026 is forecast at 2.3 percent to 3.3 percent, with inflation expected at 0.5 percent to 1.5 percent.
The Southeast Asian nation's economic outlook is supported by increased public investment, domestic consumption, and a rebound in the vital tourism sector, Paetongtarn noted.
However, growth remains constrained by high levels of household and corporate debt, as well as risks stemming from U.S. trade protectionism, geopolitical tensions, and volatility in the agricultural sector, the prime minister said.
A four-day debate in the lower House of Representatives is set to conclude on Saturday, and the bill requires support from the majority of lawmakers present to pass its first reading.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
ICJ bid to end border row
The nation will file a complaint with the International Court of Justice (ICJ) over border disputes with Thailand, Prime Minister Hun Manet said, after a Cambodian soldier was killed in a recent frontier clash. 'Cambodia hopes that the Thai side will agree with Cambodia to jointly bring these issues to the ICJ... to prevent armed confrontation again over border uncertainty,' Hun Manet said yesterday during a meeting between MPs and senators. Military clashes between the South-East Asian neighbours erupted in 2008 and have led to several years of sporadic violence, resulting in at least 28 deaths. The most recent occurred last week, when a Cambodian soldier was killed in a location known as the Emerald Triangle – a joint border area between Cambodia, Thailand and Laos. The day after, Cambodia's Foreign Ministry sent a letter to the Thai embassy in Phnom Penh demanding 'an immediate and thorough investigation' into the 'unprovoked attack'. Describing the incident as 'a violation of Cambodian sovereignty', Phnom Penh said it remained committed to resolving the issue through 'peaceful and diplomatic avenues'. Prime Minister Hun Manet said that even if the Thai side did not agree on bringing the issue to the ICJ, Cambodia would still file the complaint. He added that the dispute was being 'incited by small extremist groups in both countries', which could lead to further clashes. Cambodia's military had said they were attacked first in Wednesday's incident, while the Thai side said their soldiers were responding to gunshots. The Thai and Cambodian militaries met the following day, agreeing to ease tensions. Thailand says a Joint Boundary Committee will meet in the next two weeks to resolve the issue. Another is Ta Moan Thom Temple, the backdrop for a video posted on social media earlier this year showing a woman singing a patriotic Khmer song which led to Bangkok lodging a formal protest to Phnom Penh. Cambodia and Thailand have long been at odds over their more than 800km-long border, which was largely drawn during the French occupation of Indochina. The 2008 military clashes erupted over a patch of land next to Preah Vihear Temple, a 900-year-old structure near their shared border. This led to several years of sporadic violence before the ICJ ruled the disputed area belonged to Cambodia. — AFP
The Star
3 hours ago
- The Star
U.S. stocks close higher despite trade headwinds
NEW YORK, June 2 (Xinhua) -- U.S. stocks ended higher on Monday, as investors appeared to look past renewed global trade tensions. The Dow Jones Industrial Average rose 35.41 points, or 0.08 percent, to 42,305.48. The S&P 500 added 24.25 points, or 0.41 percent, to 5,935.94. The Nasdaq Composite Index increased 128.85 points, or 0.67 percent, to 19,242.61. Ten of the 11 primary S&P 500 sectors ended in green, with energy and technology leading the gainers by adding 1.15 percent and 0.89 percent, respectively. Meanwhile, industrials bucked the trend by losing 0.24 percent. The United States has seriously undermined the consensus reached during the China-U.S. economic and trade talks in Geneva by successively introducing multiple discriminatory restrictive measures against China, China's Ministry of Commerce said Monday. These measures included issuing guidance on AI chip export controls, halting sales of chip design software to China, and announcing the revocation of visas for Chinese students, according to a spokesperson for the ministry. Meanwhile, friction with the European Union intensified after U.S. President Donald Trump announced plans to double tariffs on imported steel to 50 percent. In response, an EU spokesperson warned the move could derail ongoing negotiations, stating "this decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." "Markets see the latest round of tariff threats and ramped up rhetoric against China, the EU, and steel as nudges to move negotiations towards the finish line," said Jamie Cox, managing partner at Harris Financial Group. U.S. stocks entered June cautiously after a strong May rally, during which the S&P 500 jumped more than 6 percent, marking its best month since November 2023 and the strongest May performance since 1990. Despite fears that new tariffs could trigger inflation, Federal Reserve Governor Christopher Waller said Monday that any price increases are likely to be short-lived. He added that this scenario could give the Fed room to make "positive" rate cuts in 2025. "I support looking through any tariff effects on near term-inflation when setting the policy rate," he said. As earnings season winds down, a few notable companies are still set to report this week, including CrowdStrike, Broadcom, DocuSign, and Lululemon. Looking ahead, markets are closely watching key economic data set for release this week, especially Friday's May nonfarm payrolls report, which could shed light on how ongoing trade disputes and shifting interest rate expectations are affecting the broader U.S. economy. On Monday, new data from the Institute for Supply Management showed continued contraction in the U.S. manufacturing sector, with imports falling to their lowest level since 2009.
The Star
3 hours ago
- The Star
Elon Musk's Neuralink closes Series E funding round
SAN FRANCISCO, June 2 (Xinhua) -- Elon Musk's brain computer interface startup Neuralink announced on Monday that the company has closed a 650-million-U.S.-dollar funding round. The Series E fundraise included investors such as ARK Invest, Founders Fund, Sequoia Capital, and Thrive Capital, among others, the company said in a blog post. Neuralink last raised a 280-million-dollar Series D funding round in 2023, with an additional 43-million-dollar tranche added months later. The company said it has now conducted more human clinical trials, implanting its brain chips in five individuals with severe paralysis. In May, Neuralink received Breakthrough Device Program from the U.S. Food and Drug Administration. The Breakthrough Devices Program is a voluntary program for certain medical devices and device-led combination products that provide for more effective treatment or diagnosis of life-threatening or irreversibly debilitating diseases or conditions, according to the Food and Drug Administration. The program is intended to provide patients and health care providers with timely access to medical devices by speeding up development, assessment, and review for premarket approval.
