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Reuters
3 days ago
- Business
- Reuters
Thai government's $115 billion budget clears first parliamentary vote
BANGKOK, May 31 (Reuters) - The Thai government's 3.78 trillion baht ($115 billion) budget for the 2026 fiscal year passed its first parliamentary vote on Saturday, but there will be a series of further votes before it can be enacted. After a four-day debate, the draft budget bill, aimed at supporting a sluggish economy facing steep U.S. tariffs, passed with 322 votes in favour and 158 against. The Pheu Thai Party-led government has a majority in the House of Representatives, but there have been some tensions in the coalition. The budget vote is crucial to the government as a defeat could have forced Prime Minister Paetongtarn Shinawatra to either resign and make way for a new premier elected by parliament, or dissolve the house and call a general election. The budget will still need to pass second and third readings in the lower house, expected in August, before being sent for Senate and royal approval. The 2026 fiscal year starts on October 1. ($1 = 32.85 baht)
CNA
6 days ago
- Business
- CNA
Thai PM to propose US$115 billion budget to parliament to support lacklustre economy
BANGKOK: Thai Prime Minister Paetongtarn Shinawatra will on Wednesday (May 28) propose a 3.78 trillion baht (US$115.5 billion) budget to parliament for the 2026 fiscal year, as her government seeks to support a sluggish economy facing steep US tariffs. The draft budget bill, which will be debated in the house over the next four days, projects a 0.7 per cent rise in spending, and a 0.7 per cent drop in the budget deficit to 860 billion baht, or 4.3 per cent of gross domestic product, from the 2025 fiscal year that ends in September. "A deficit budget policy is aimed at maintaining economic stability, including supporting a recovery and promoting growth at an appropriate level," the bill said. The budget plan projects growth at 2.3 per cent to 3.3 per cent for both 2025 and 2026, with inflation predicted at 0.5 per cent to 1.5 per cent. The economy expanded 2.5 per cent last year, lagging regional peers. The plan did not take into account the potential impact of US tariffs. Thailand faces a 36 per cent US tariff if a reduction cannot be negotiated before a moratorium expires in July. The United States, Thailand's biggest export market, has set a 10 per cent baseline tariff for most countries while the moratorium is in place. Parliament will deliberate on the bill in the remainder of this week before it is put to a vote on Saturday, which will require support from the majority of lawmakers present. The budget is expected to pass, but comes amid tensions in the Pheu Thai Party-led coalition, particularly with its biggest partner, the Bhumjaithai Party. Disagreements have surfaced over the government's casino bill, which aims to legalise casinos within integrated complexes to boost tourism. Rifts over constitutional reform and policy on the use and sale of cannabis, which was decriminalised in 2022 but is now facing tighter restrictions, have also strained the alliance. If the budget does not pass, Paetongtarn, who came to power last year, could either step down and make way for a new premier elected by parliament, or dissolve the lower house and call a new general election. Southeast Asia's second-largest economy expanded an annual 3.1 per cent in the first quarter, but the state planning agency last week slashed its full-year growth forecast range by a percentage point to 1.3 per cent to 2.3 per cent because of the US tariffs.
Reuters
6 days ago
- Business
- Reuters
Thai PM to propose $115 billion budget to parliament to support lacklustre economy
BANGKOK, May 28 (Reuters) - Thai Prime Minister Paetongtarn Shinawatra will on Wednesday propose a 3.78 trillion baht ($115.5 billion) budget to parliament for the 2026 fiscal year, as her government seeks to support a sluggish economy facing steep U.S. tariffs. The draft budget bill, which will be debated in the house over the next four days, projects a 0.7% rise in spending, and a 0.7% drop in the budget deficit to 860 billion baht, or 4.3% of gross domestic product, from the 2025 fiscal year that ends in September. "A deficit budget policy is aimed at maintaining economic stability, including supporting a recovery and promoting growth at an appropriate level," the bill said. The budget plan projects growth at 2.3% to 3.3% for both 2025 and 2026, with inflation predicted at 0.5% to 1.5%. The economy expanded 2.5% last year, lagging regional peers. The plan did not take into account the potential impact of U.S. tariffs. Thailand faces a 36% U.S. tariff if a reduction cannot be negotiated before a moratorium expires in July. The United States, Thailand's biggest export market, has set a 10% baseline tariff for most countries while the moratorium is in place. Parliament will deliberate on the bill in the remainder of this week before it is put to a vote on Saturday, which will require support from the majority of lawmakers present. The budget is expected to pass, but comes amid tensions in the Pheu Thai Party-led coalition, particularly with its biggest partner, the Bhumjaithai Party. Disagreements have surfaced over the government's casino bill, which aims to legalise casinos within integrated complexes to boost tourism. Rifts over constitutional reform and policy on the use and sale of cannabis, which was decriminalised in 2022 but is now facing tighter restrictions, have also strained the alliance. If the budget does not pass, Paetongtarn, who came to power last year, could either step down and make way for a new premier elected by parliament, or dissolve the lower house and call a new general election. Southeast Asia's second-largest economy expanded an annual 3.1% in the first quarter, but the state planning agency last week slashed its full-year growth forecast range by a percentage point to 1.3% to 2.3% because of the U.S. tariffs. ($1 = 32.740 baht)
Japan Times
26-05-2025
- Politics
- Japan Times
Surge in cannabis smuggling prompts Thailand to tighten rules
Thailand aims to clamp down on easy access to cannabis by mandating medical prescriptions amid rising instances of tourists attempting to smuggle out large quantities of weed. Dispensaries will be allowed to sell cannabis only to those with licenses or with prescriptions from medical professionals, including traditional medicine practitioners, when proposed changes to existing rules take effect in about 40 days. The amount sold will also be limited to 30 days of use, according to the Ministry of Public Health. The new rules, which will be binding on locals and foreigners alike, come after Thai authorities intercepted 73 kilograms of cannabis earlier this week at Bangkok's Suvarnabhumi airport. Weed smuggled out of Thailand has reached the United Kingdom, India, Pakistan, Hong Kong and many other destinations, Public Health Minister Somsak Thepsuthin said. Thailand will now make it harder to access cannabis except for medical reasons, he added. Thailand was the first country in Asia to decriminalize cannabis in 2022, but has so far struggled to regulate and contain its free use. A legal vacuum, without a cannabis law in place, has allowed more than 10,700 cannabis dispensaries to open nationwide, with many in popular tourist areas and business districts in Bangkok and beyond. The Southeast Asian country has also made several policy U-turns after recreational smoking became a hot-button issue due to wider societal concerns over addiction. Somsak's ruling Pheu Thai Party had vowed to relist marijuana as a narcotic to restrict its use to just medical purposes, but opposition from Bhumjaithai Party, the second-biggest group in the ruling coalition, has forced Pheu Thai to walk back on its pledge and keep the plant legal. While cannabis can be consumed within Thailand, it has been smuggled out of the country in tourist luggages or by mail. Since British and Thai authorities joined forces last year, over 50 British nationals have been arrested in Thailand for attempted cannabis smuggling. Thai airport authorities have also intercepted over 800 cannabis smugglers and seized over 9 tons of cannabis, the British government said in a statement. The new rules are likely to be temporary as Thailand is still working on a full-fledged cannabis bill to regulate the wider uses, sales, exports and production of the plant. The draft bill was unveiled in September but hasn't been approved by the cabinet or reached parliament for deliberation. "The cannabis bill will go on its own track, but it can't be rushed. We're looking at two more years before it's ready,' Somsak told reporters. "If people are still unhappy, we'll recriminalize it.' The public and industry stakeholders have until June 5 to submit feedback on the proposed ministry regulation, which will then be submitted to the cabinet for approval.
The Star
25-05-2025
- Politics
- The Star
Prescription and quantity cap to weed out herb smuggling
THE country aims to clamp down on easy access to cannabis by mandating medical prescriptions amid rising instances of tourists attempting to smuggle out large quantities of weed. Dispensaries will be allowed to sell cannabis only to those with licenses or with prescriptions from medical professionals, including traditional medicine practitioners, when proposed changes to existing rules take effect in about 40 days. The amount sold will also be limited to 30 days of use, according to the Ministry of Public Health. The new rules, which will be binding on locals and foreigners alike, come after Thai authorities intercepted 73kg of cannabis earlier this week at Bangkok's Suvarnabhumi airport. Weed smuggled out of Thailand has reached the United Kingdom, India, Pakistan, Hong Kong and many other destinations, Public Health Minister Somsak Thepsuthin said. Thailand will now make it harder to access cannabis except for medical reasons, he added. Thailand was the first country in Asia to decriminalise cannabis in 2022, but has so far struggled to regulate and contain its free use. A legal vacuum, without a cannabis law in place, has allowed more than 10,700 cannabis dispensaries to open nationwide, with many in popular tourist areas and business districts in Bangkok and beyond. The South-East Asian country has also made several policy u-turns after recreational smoking became a hot-button issue due to wider societal concerns over addiction. Somsak's ruling Pheu Thai Party had vowed to re-list marijuana as a narcotic to restrict its use to just medical purposes, but opposition from Bhumjaithai Party, the second-biggest group in the ruling coalition, has forced Pheu Thai to walk back on its pledge and keep the plant legal. While cannabis can be consumed within Thailand, it has been smuggled out of the country in tourist luggages or by mail. Since British and Thai authorities joined forces last year, over 50 British nationals have been arrested in Thailand for attempted cannabis smuggling. Thai airport authorities have also intercepted over 800 cannabis smugglers and seized over nine tonnes of cannabis, the British government said in a statement. The new rules are likely to be temporary as Thailand is still working on a full-fledged cannabis bill to regulate the wider uses, sales, exports and production of the plant. The draft Bill was unveiled last September but hasn't been approved by the Cabinet or reached parliament for deliberation. — Bloomberg
