Thai budget Bill, spending to move as planned
The government is set to inject an additional 48 billion baht (S$1.87 billion) into the economy over the remaining three months of the current fiscal year, Pichai told Bloomberg News in an interview late Sunday (Jul 6). The US$115 billion budget Bill for the fiscal year beginning Oct 1 is on track to be passed by parliament by the end of August, he said.
The finance chief's comments aim to reassure investors concerned about the government's economic agenda after Prime Minister Paetongtarn Shinawatra was suspended over alleged ethics violations tied to a border dispute with Cambodia. The departure of a key coalition partner has left the administration with a narrow parliamentary majority, raising concerns about its stability.
'The prime minister has been suspended but everything is still carrying on,' Pichai said. 'Our big economic stimulus plans are also still going ahead.'
The minister also pointed to progress in trade talks with the US as proof the government remains functional. Pichai, who met with Trump administration officials last week, submitted a revised proposal late Sunday offering broader market access for US agricultural and industrial goods in hopes of securing a deal before the July 9 deadline and avoiding a 36% tariff.
US Treasury Secretary Scott Bessent has indicated that some countries lacking an agreement by the 90-day deadline will be able to negotiate until the tariffs kick in on Aug 1.
Obtaining a lower US tariff rate is considered crucial for shielding Thailand's trade-reliant economy from additional risks, especially as it grapples with the region's highest household debt and weak domestic consumption. The US was Thailand's largest export market last year, accounting for about 18% of the country's total shipments that left a trade surplus of about US$46 billion.
Pichai said the Economic Stimulus Policy Committee will deliberate ways to accelerate public spending to support the economy.
'I'll have further discussions on how to disburse the stimulus. Some parts may be used to shield against impacts from US tariffs before the end of the year,' Pichai said. 'I'll assess the impact this week. The money has all been prepared.' BLOOMBERG
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