<p>Thailand's parliament on Saturday passed a delayed draft budget bill for the 2020 fiscal year aimed at boosting Southeast Asia's second-largest economy, which is growing at its slowest pace in years.</p>.<p>The budget's approval was key for the survival of the coalition government, which has a slim majority in parliament. A defeat would have forced former junta leader Prayuth Chan-ocha's government to either resign or dissolve parliament.</p>.<p>After a four-day debate, the draft bill's second and third readings passed with 253 votes. There were 196 abstentions in the 450-member parliament.</p>.<p>The proposed budget foresees a 7% rise in overall spending to 3.2 trillion baht ($105.89 billion) for the fiscal year that began on Oct. 1. It sets a deficit of 469 billion baht, up 4.2% from the 2019 fiscal year.</p>.<p>"The government will ensure that the approved budget will be used effectively for the country's security and the people's prosperity," Prayuth told parliament.</p>.<p>The draft bill is expected to come into effect in February following a vote in the Senate, which meets on Jan. 20, and the king's endorsement, Budget Bureau chief Dechapiwat Na Songkhla told Reuters.</p>.<p>Its passage was pushed back after delays in the formation of the cabinet following an election in March that saw Prayuth win another term as prime minister.</p>.<p>"The challenge here is how to speed up disbursement, which has been subdued since October due to the budget delay," said Charnoon Boonnuch, an economist at Nomura in Singapore.</p>.<p>More fiscal stimulus is needed to help economic growth, he said, adding two rate cuts by the central bank already pushed the key interest rate to a record low of 1.25% last year amid a deteriorating outlook.</p>.<p>He expected a further rate cut at the central bank's policy review on Feb. 5.</p>.<p>The central bank forecast economic growth at 2.8% for this year and 2.5% for 2019 -- the slowest pace of growth in five years.</p>
<p>Thailand's parliament on Saturday passed a delayed draft budget bill for the 2020 fiscal year aimed at boosting Southeast Asia's second-largest economy, which is growing at its slowest pace in years.</p>.<p>The budget's approval was key for the survival of the coalition government, which has a slim majority in parliament. A defeat would have forced former junta leader Prayuth Chan-ocha's government to either resign or dissolve parliament.</p>.<p>After a four-day debate, the draft bill's second and third readings passed with 253 votes. There were 196 abstentions in the 450-member parliament.</p>.<p>The proposed budget foresees a 7% rise in overall spending to 3.2 trillion baht ($105.89 billion) for the fiscal year that began on Oct. 1. It sets a deficit of 469 billion baht, up 4.2% from the 2019 fiscal year.</p>.<p>"The government will ensure that the approved budget will be used effectively for the country's security and the people's prosperity," Prayuth told parliament.</p>.<p>The draft bill is expected to come into effect in February following a vote in the Senate, which meets on Jan. 20, and the king's endorsement, Budget Bureau chief Dechapiwat Na Songkhla told Reuters.</p>.<p>Its passage was pushed back after delays in the formation of the cabinet following an election in March that saw Prayuth win another term as prime minister.</p>.<p>"The challenge here is how to speed up disbursement, which has been subdued since October due to the budget delay," said Charnoon Boonnuch, an economist at Nomura in Singapore.</p>.<p>More fiscal stimulus is needed to help economic growth, he said, adding two rate cuts by the central bank already pushed the key interest rate to a record low of 1.25% last year amid a deteriorating outlook.</p>.<p>He expected a further rate cut at the central bank's policy review on Feb. 5.</p>.<p>The central bank forecast economic growth at 2.8% for this year and 2.5% for 2019 -- the slowest pace of growth in five years.</p>