Cabinet approves THB 157bn budget to boost economy
The new stimulus plan will focus on promoting community economy, tourism, agriculture, and infrastructure
The Cabinet on Tuesday approved a new economic stimulus plan under a budget framework of 157 billion baht, as proposed by the Finance Ministry following the decision made at the meeting of the Economic Stimulus Policy Committee on Monday (May 19).
According to government spokesperson Jirayu Houngsub, the plan covers infrastructure for water management and transportation, tourism development, mitigating export impacts and enhancing productivity, community economy support, and more.
Its goal is to inject funds into the economy to preserve employment and lay a foundation for growth. The funding comes from the 2025 fiscal year’s annual budget, specifically the central contingency fund for economic stimulus and strengthening the economic system, he said.
Details of the 157-billion-baht economic stimulus plan are as follow:
1. Water infrastructure:
- Flood prevention during the rainy season and water storage for the dry season
- Water distribution to communities and agricultural areas nationwide
- Development and improvement of water supply systems
2. Transportation:
- Resolving traffic bottlenecks and missing links
- Enhancing safety for travel and freight transport
- Addressing railway and road level crossing issues
- Constructing and upgrading truck rest areas to enforce the Land Transport Act B.E. 2522
- Improving and developing roads connecting secondary cities, tourist spots, and production areas
3. Tourism development:
- Upgrading tourist attractions, sports facilities, and amenities such as restrooms, accommodation, and signage
- Improving convenience systems for tourists
- Enhancing tourist safety, including installing CCTV in key tourist cities
- Stimulating domestic tourism, especially in secondary cities
4. Reducing export impacts and increasing productivity:
- Supporting farmers and SMEs to use advanced technology and adapt cultivation areas appropriately
- Providing financial support and credit (for exporters) to promote employment through social security funds
- Developing digital infrastructure to support digital government and international trade
5. Community economy and other projects:
- Supporting village and urban community funds (SML) as financial resources for local people and grassroots economic development
- Developing community economies based on local stakeholder needs
- Human capital development through education as a foundation for national economic growth
Project Oversight and Monitoring
The Finance Ministry’s Deputy Permanent Secretary, Head of the Expenditure and Debt Taskforce, was appointed as chair of a subcommittee to supervise and monitor project implementation and report progress to the committee.
Project Funding
The source of funds is the fiscal year 2025 annual budget’s central contingency fund, allocated for economic stimulus and strengthening the economic system, totaling no more than 157 billion baht.
Project Proposal Submission
Agencies are required to submit project proposals using the Economic Stimulus Plan 2025 forms. Proposals must be submitted through the Deputy Prime Minister, supervising Minister, or related authority for review by the appointed screening subcommittee. Proposals must also be submitted simultaneously to the Budget Bureau by the end of May 2025.
A Government House source had earlier revealed that the government would cancel the 10,000-baht digital wallet handout for 2.7 million young people aged 16–20—previously budgeted at 27 billion baht—and redirect the funds to more suitable projects under the new stimulus plan.
