On May 28, 2025, Thai Prime Minister Paetongtarn Shinawatra presented a monumental 3.78 trillion baht (US$115.5 billion) budget proposal to parliament for the 2026 fiscal year. This ambitious plan aims to breathe new life into Thailand's lacklustre economy, which has been grappling with sluggish growth and external pressures such as steep US tariffs.
The draft budget bill reflects a modest 0.7% increase in spending compared to the previous fiscal year, while projecting a 0.7% reduction in the budget deficit to 860 billion baht. This strategic fiscal adjustment underscores the government's intent to balance economic stimulus with fiscal responsibility.
Thailand's economy has faced significant challenges, including declining exports and geopolitical trade tensions. The proposed budget is seen as a critical step to bolster domestic growth and shield the nation from global economic headwinds, particularly the impact of US trade policies.
Prime Minister Paetongtarn emphasized the urgency of revitalizing key sectors such as tourism, manufacturing, and infrastructure development. The budget allocates funds to support these industries, aiming to create jobs and stimulate consumer spending.
As the bill undergoes parliamentary debate, analysts are keenly observing how the government will prioritize spending amidst competing demands. The outcome of these discussions will likely shape Thailand's economic trajectory for the coming year.
For more details on the budget proposal, visit the original report on Channel NewsAsia. The nation watches as this significant fiscal plan unfolds, with hopes of a stronger economic future.
Andrew Lee
