Bangkok: The Prime Minister has proposed a draft budget for 2016 amounting to 3.78 trillion baht, targeting a GDP growth between 2.3% and 3.3%. The budget proposal, presented to the Parliament, outlines strategies to mitigate the anticipated economic impact of US tax policies on the Thai economy. It emphasizes efficient expenditure across six key strategies to maximize benefits.
According to Thai News Agency, the draft of the 2026 Budget Expenditure Act was explained by Prime Minister Ms. Paethongtarn Shinawatra to the House of Representatives. The budget is grounded in the forecasted expansion of the Thai economy in 2026, driven by increased consumption, private investments, and a recovering tourism sector. However, geopolitical conflicts, climate change, and trade barriers remain significant risks to economic growth.
The Thai economy is expected to face heightened risks from global trade policies, while inflation rates may drop below target due to global oil prices and government interventions. The Monetary Policy Committee has responded by reducing the policy interest rate to 1.75% per annum to adapt to changing economic and inflation trends.
The inflation rate is projected to range between 0.5% and 1.5%, with a current account surplus of 2.3% of GDP. The 2016 budget structure reflects an increase in expenditure by 27.9 billion baht, making it 18.9% of GDP. Key allocations include 2.65 trillion baht for regular expenses, 123,541 million baht for treasury reimbursements, 864,077 million baht for investments, and 151,200 million baht for principal repayment.
The budget allocation strategy is divided into six primary strategies, including security, competitiveness, human resources development, social equality, environmental quality, and public sector management. Each strategy targets specific areas such as enhancing life quality, promoting economic growth, improving infrastructure, supporting digital and energy sectors, and reinforcing public services.
The Prime Minister highlighted the government’s focus on sustainable economic growth and quality of life improvements, despite global economic constraints. The administration aims to maintain economic stability through a deficit budget policy, ensuring efficient budget utilization for the maximum benefit of the country’s citizens.