BANGKOK: Thai Prime Minister Srettha Thavisin’s US$100 billion (RM465 billion) budget plan, delayed by a months-long political stalemate weighing on Southeast Asia’s second-largest economy, cleared its first parliamentary hurdle.
The spending plan for the fiscal year that began on Oct. 1 was backed by 311 lawmakers, opposed by 177, while four members abstained, according to the results of an initial parliamentary vote held late Friday.
Srettha’s coalition government, which took office in September, has proposed a 9.3% increase in spending to 3.48 trillion baht ($100 billion) in a bid to boost growth. Thailand’s economy faces multiple challenges including a decade-high cost of borrowing, impact from El Nino, near-record high household debt and sluggish exports.
The premier has repeatedly said the economy is in a crisis, arguing for a $14 billion cash handout program that’s opposed by some central bankers and economists. The budget plan for the fiscal year will entail 693 billion baht in deficit.
The bill was delayed for months amid a political impasse following a fractured election result. It will now go to a parliamentary committee for scrutiny. The house will take up the bill for second and third readings in April before sending it to the Senate.
--With assistance from Pathom Sangwongwanich.
©2024 Bloomberg L.P.
