BANGKOK Thailand's new cabinet approved on Monday a budget plan for higher spending of 3.48 trillion baht ($97.64 billion) and a larger budget deficit of 693 billion baht for the fiscal year 2024, Deputy Finance Minister Julapun Amornvivat told reporters.

The higher spending allocation comes as the new government seeks to stimulate a sluggish economy weighed down by soft demand for Thai exports and low investor confidence.

The revised budget is higher than that approved by the previous government, which projected spending of 3.35 trillion baht and a deficit of 593 billion baht.

Southeast Asia's second-largest economy grew 1.8% in the April-June period on the year and 0.2% on the quarter, sharply slowing from the previous three months.

The economy is now expected to grow 2.8% this year, Deputy Finance Minister Krisada Chinavicharana said on Sept. 8 , less than the ministry's previous projection of 3.5% growth.

($1 = 35.64 baht)

(Reporting by Kitiphong Thaichareon ; Writing by Orathai Sriring; Editing by Kanupriya Kapoor and Muralikumar Anantharaman)