Thailand Reviews 693 Billion Baht Budget as Inflation Looms
Thailand's parliament is reviewing a 693.88 billion baht budget for fiscal 2570 amid inflation concerns exceeding 4%, with the Bank of Thailand projecting modest economic growth of 2.3% this year buoyed by AI investment and technology expor
On July 3, 2569, Natthadittha Thepsutin, a Pheu Thai party list MP and spokesperson for the special budget committee, announced the committee's review of the fiscal year 2570 spending budget bill. The meeting began examining the central budget under Section 6, totaling 693.88 billion baht.
The committee consulted four economic agencies to assess the country's overall economic situation: the Office of the National Economic and Social Development Council, the Ministry of Finance, the Bank of Thailand, and the Budget Bureau.
Thepsutin reported that the Bank of Thailand estimates Thailand's economy will expand in the short term despite negative pressures from Middle East conflicts, which have driven up commodity and oil prices. This has created inflationary pressure, with inflation potentially exceeding 4% in the fourth quarter before gradually declining next year.
Rising inflation may slow household consumption in the latter half of 2024, though government measures like the "Thailand Helps Thailand Plus" program are supporting the economy and private sector spending in the third quarter.
Thepsutin noted that artificial intelligence investment represents a significant positive factor, expanding globally and boosting demand for Thailand's technology exports. Technology product exports grew 34.2% in 2568 and are forecast to grow 43.8% this year and 17.2% next year, demonstrating AI's critical role in driving Thailand's economy.
"Despite inflation's impact on consumption, investment and AI industry momentum should help Thailand's economy grow 2.3% this year and 1.8% next year, though consumer spending and government measures require close monitoring," Thepsutin said.
The committee also questioned the National Development Council about economic impacts from Thailand-Cambodia tensions and contingency plans. The council clarified that while economic impact assessments have been conducted, cross-border trade volume is insufficient to significantly affect the nation's overall economy.
Thepsutin added that the committee will begin reviewing the Prime Minister's Office budget next on July 6.
