“This large expenditure is to achieve the objective of stimulating the economy and increasing its potential,” Finance Minister Pichai Chunhavajira said on Tuesday (June 24), reports the Bangkok Post.
Mr Pichai said the stimulus package would generate jobs for about 7.4 million people, with employment accounting for B34bn, or 30% of the total stimulus budget.
The projects, including new roads, power infrastructure and facilities to improve access to drinking water, are expected to boost gross domestic product (GDP) growth by 0.4 percentage points, he said.
To ensure timely action, the Ministry of Finance has stressed that all projects must have contracts signed or procurement agreements finalised by Sept 30 of this year or the funding will be cancelled.
The Thai economy expanded by 3.1% year-on-year in the first quarter of 2025 but forecasters expect a steady slowdown for the rest of the year as the impact of US tariffs starts to bite. (US tariffs on Thailand have yet to come into effect, see here.)
Separately, there will be soft loans worth B200bn to help exporters, Mr Pichai added.
All told, the stimulus budget covers 481 projects across 50 government agencies. Highlights include:
Infrastructure development
A total of 34 projects have been approved with a combined budget of B85bn. Among them:
Water infrastructure: Eight projects worth B39.1bn will focus on improving water supply, upgrading existing water sources and developing water distribution systems, expanding rain-fed agricultural areas and developing flood retention areas and flood prevention in urban communities.
These projects are expected to protect 191,167 rai of land from flooding and erosion, increase water supply by 192.2mn cubic metres and benefit 906,803 households across 4.79mn rai. The projects will generate jobs for 73,807 people.
Transport infrastructure: Twenty-six projects worth B45.9bn will improve secondary city road networks, enhance travel safety, support agricultural logistics, and resolve traffic bottlenecks. The projects will upgrade 417 kilometres of roads, improve 1,689 routes, and enhance safety at 3,604 locations. These will create jobs for 285,000 people.
Tourism development
A total of 420 tourism-related projects have been approved with a budget of B10bn. They include upgrading tourist attractions, sports stadiums and other facilities; improving tourist services; enhancing safety through CCTV installation; and promoting tourism in secondary cities.
The projects are expected to draw 2.76mn additional tourists, generate B55bn in economic value and benefit 7.6mn people.
Export resilience, productivity, and digital infrastructure
Ten projects with a budget of B11.1bn have been approved. They will focus on the following:
Agriculture: Four projects worth B160mn will increase farmers’ income by at least B6,000 per rai annually and boost cooperative earnings by B320,000 per year.
Labour: One project worth B10bn will support small businesses affected by US tariff policies, providing loans to over 1,700 businesses and generating jobs for 100,000 people.
Digital: Five projects worth B962mn will enhance digital infrastructure for trade, agriculture and public services, benefiting over 20,000 users.
Community economy and other initiatives
Seventeen projects worth B9.2bn have been approved. They include B4bn for village and urban community development; B3.6bn for educational human capital and B1.56bn for local economic development.