BANGKOK: Thailand’s parliament on Wednesday passed by a narrow margin the first reading of a 3.1 trillion baht (US$99.7 billion) budget bill for the 2022 fiscal year starting Oct. 1, aimed at reviving an economy hit by coronavirus outbreaks.
The budget is crucial to Prime Minister Prayuth Chan-ocha’s government as it deals with the Southeast Asian country’s latest, most severe outbreak yet.
After a three-day debate, the bill passed with 269 votes in favour, 201 against and two abstentions.
“The budget bill will help drive our economy out of this economic crisis caused by the outbreak as well as quickly restore growth,” Prayuth told the House of Representatives.
The bill has to pass second and third readings expected in August before it goes for senate and royal approval.
The budget forecasts a 5.7per cent drop in spending to 3.1 trillion baht in the 2022 fiscal year, with a deficit of 700 billion baht, up 15per cent from the current year.
Budget planners have assumed Southeast Asia’s second-largest economy will expand by between 2.5per cent and 3.5per cent this year and 4.0per cent to 5.0per cent in 2022.
The state planning agency, however, predicts growth of between 1.5per cent and 2.5per cent this year due to the latest outbreak.
(US$1 = 31.11 baht)
(Reporting by Orathai Sriring and Satawasin Staporncharnchai; Editing by David Holmes)
