PM stresses deficit budget needed to stimulate the economy

Prime Minister Paetongtarn Shinawatra told members of parliament today that the government had to present a deficit budget for the 2026 fiscal year to maintain economic stability, to stimulate economic growth and stability, to create economic opportunities and to improve the quality of life of the people, among other reasons.

In presenting the 3.78 trillion baht budget bill to the House, she said that the Thai economy is projected to grow between 2.3% and 3.3% next year, thanks to an increase in private sector investment and domestic consumption.

Thailand’s public sector borrowing requirement for this year is estimated at 12 trillion baht, which is still within the limit of 70% of GDP, whereas reserves stood at about 252 billion baht at the end of April.

She said that Thailand’s foreign currency reserves were estimated at US$237 billion by the end of last year, while tax revenues are estimated at 3.06 trillion baht.

The prime minister said, however, that the Thai economy is exposed to risks from global trade policies and the inflation rate, which is expected to fall below target due to a drop in the price of crude oil.

Nonetheless, opposition leader Natthaphong Ruengpanyawut criticised the government for lacking direction and a borrowing strategy and has spent excessively, without any planned investment or plans to generate more revenue.

He cited the government’s decision to redirect the 157 billion baht budget, originally allocated for the “digital wallet” scheme, for use in short-term investments for more than 7,000 local administration organisations as a clear example of the government’s complete lack of vision or planning in spending money efficiently.

He said there are no changes in the essence of the budgets for this fiscal year and the next, adding that the only changes are the amounts.

“This is not coincidental. It reflects the incompetence of the government in national administration,” said Natthaphong.