- Photo: The Nation/ANN
- Photo: The Nation/ANNBANGKOK: Thailand's Cabinet has approved a comprehensive economic stimulus package worth 151 billion baht, with the government targeting infrastructure development and tourism promotion to shield the economy from global uncertainties.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced on Tuesday (June 24) that the Cabinet had greenlit economic stimulus projects totalling 157 billion baht, including 481 projects across 50 budget-receiving units worth 115.375 billion baht designed for short-term economic stimulation with long-term benefits.
The package focuses heavily on infrastructure investment, with 85 billion baht allocated to 34 projects spanning water management and transportation networks.
Water infrastructure projects, valued at 39.136 billion baht, will develop consumption water systems, improve existing distribution networks, and create flood prevention measures in urban communities.
The water initiatives are expected to protect 191,167 rai from flooding or soil erosion whilst increasing water storage capacity by 192.22 million cubic metres. Nearly 4.8 million rai of land and over 900,000 households will benefit from the improvements, creating 73,807 jobs monthly.
Transportation infrastructure receives 45.864 billion baht across 26 projects, targeting road connections between secondary cities, enhanced safety measures, and agricultural area networks.
The government expects to develop 417 kilometres of new roads, repair 1,689 existing routes, and improve safety at 3,604 locations, generating 285,000 jobs.
Tourism, a critical sector for Thailand's economy, will receive 10.053 billion baht through 420 projects aimed at improving tourist attractions, developing convenience systems, and enhancing safety measures including CCTV installation in key tourist cities.
Officials project the investment will attract over 2.76 million additional tourists, generating more than 55 billion baht in economic value.
The package also addresses export competitiveness through 11.122 billion baht in funding for agriculture, labour support, and digitalisation initiatives.
A significant 10 billion baht loan scheme will support over 1,700 establishments and approximately 100,000 jobs, particularly small and medium enterprises affected by US tariff policies.
Community economy projects receive 9.201 billion baht, including 4 billion baht for the National Village and Urban Community Fund and 3.641 billion baht for human capital development in education.
The government has strategically allocated higher proportions of funding to lower-income regions, particularly in the Northeast, whilst areas with higher per capita income such as Bangkok and the Eastern region receive smaller allocations.
This approach aims to support inclusive economic growth and reduce regional disparities.
Finance Minister Pichai emphasised that the 115.375 billion baht injection is projected to boost GDP growth by 0.4% whilst creating at least 7.4 million jobs.
The employment-focused spending represents approximately 30% of the total package.
"The action plan will effectively stimulate the economy in the short term by accelerating spending through immediate infrastructure development, which will create jobs, distribute income, and circulate money within the economic system," Pichai stated.
The minister noted that the stimulus combines immediate economic relief with long-term structural reforms through human capital investment and regulatory improvements to enhance national competitiveness and labour productivity.
However, the Cabinet approval covers only the budget framework, with fund allocation and disbursement requiring verification by relevant agencies to ensure compliance with regulations and laws.
The Economic Stimulus Project Policy Committee will monitor the economic situation closely and consider additional measures as needed to address ongoing economic uncertainties. - The Nation/ANN
