Bangkok: Deputy Prime Minister and Finance Minister Pichai Chunhavajira has expressed his confidence in meeting the revenue targets for 2025 despite acknowledging concerns over Thailand’s current economic conditions.

According to Thai News Agency, Pichai discussed the draft budget for the fiscal year 2026, emphasizing the importance of tackling structural economic problems and enhancing private investment.

Pichai highlighted that the nation’s GDP has been revised down from an initially projected growth rate of over 3% to 1.8%. Despite this adjustment, he remains optimistic about achieving the revenue targets and expects the treasury deficit to remain manageable. He pointed out that Thailand’s economic structure has changed significantly over the decades, noting that private investment, which once accounted for 40% of GDP, has dwindled to an average of 20% over the past ten years. This decline is attributed to reduced private investment, a decrease in SMEs, disappearing supply chains, and limited export opportunities, resulting in fewer jobs and lower-value export products, particularly in the agricultural sector.

Pichai asserted that addressing these structural issues requires government intervention and support for private sector investments in state enterprises or public-private partnerships (PPPs). He stressed that the current budget is a starting point for recognizing and adapting to global economic changes, which necessitate long-term strategic adjustments to make the Thai economy more self-reliant.

The fiscal plans include a deficit budget of 850 billion baht over two fiscal years, equating to about 4% of GDP. However, with a principal repayment of 150 billion baht, the net deficit is projected to be 700 billion baht or approximately 3%. Pichai explained that maintaining a deficit budget is crucial for Thailand’s ongoing economic development, likening the nation to a “child who has not yet grown up” in the Asian growth context. He emphasized the need to reform the country’s production structure while keeping the debt-to-GDP ratio within acceptable limits.

Additionally, Pichai addressed the allocation of the 157 billion baht budget, indicating that the focus should be on solving structural problems rather than direct consumer spending. Despite time constraints in budget preparation, he urged Members of Parliament to scrutinize the 2026 budget details and consider amendments to address structural issues effectively. Pichai also noted the importance of adapting tourism strategies to align with changing tourist behaviors.