Thailand announces $110.7b spending plan for FY ’26

Thailand is planning for a modest increase in spending of 3.78 trillion baht ($110.7 billion) for the fiscal year 2026, while maintaining a slightly reduced deficit of 860 billion baht for that year, as announced by the government on Tuesday.

The 2026 budget plan is based on projected economic growth of 2.3 per cent to 3.3 per cent and inflation of 0.7 per cent to 1.7 per cent. The medium-term fiscal plan was approved by the cabinet on Tuesday for the fiscal year starting on Oct. 1, 2025.

The plan forecasts a public debt-to-GDP ratio of 67.3 per cent by the conclusion of the 2026 fiscal year, compared to 65.6 per cent at the end of the 2025 fiscal year.

The proposed 2026 budget would see a 0.7 per cent increase in spending from the 3.75 trillion baht allocated for the 2025 fiscal year, which is expected to rise from the 2024 levels, as per the statement.

“The fiscal target of the fiscal plan still requires a deficit budget to maintain economic stability and focus on reducing the deficit to an appropriate level in the medium term,” the government said.

Attribution: Reuters

Subediting: M. S. Salama