Thai Prime Minister Paetongtarn Shinawatra submitted a projected 3.78 trillion baht budget for the fiscal year 2026, equivalent to 115.66 billion US dollars. The strategy, which was submitted to parliament, aims to rekindle economic momentum in the face of global trade uncertainty. The draft budget calls for a 0.7% rise in spending and forecasts an 860 billion baht deficit. This represents a 0.7% decline over the 2025 fiscal year, which ends in September.
Paetongtarn emphasised that her administration prioritises long-term recovery while maintaining fiscal discipline. The budget also seeks to develop national infrastructure and promote social equality. With revenue generation remaining a challenge, the administration has adopted a deficit-driven policy. Key areas include improving national security, increasing competitiveness, and investing in talent development.
The expected economic growth rate for 2025 and 2026 is between 2.3 and 3.3%. Inflation is predicted to range between 0.5 and 1.5%. Increased public investment, greater domestic demand, and a revival in tourism all contribute to the positive prognosis. However, issues remain due to high household and business debt. Geopolitical conflicts, US trade policy, and agriculture sector volatility are additional potential dangers.
