Thai PM Unveils Framework for 3.78 Trillion Baht Budget

Prime Minister Paetongtarn Shinawatra has outlined Thailand's fiscal strategy for 2026, emphasising "productive growth" in a budget totalling 3.78 trillion baht with a projected deficit of 860 billion baht.

Speaking at the Impact Exhibition and Convention Centre in Muang Thong Thani on Wednesday, the Prime Minister addressed more than 500 attendees, including Cabinet members and senior government officials, to lay out her vision for the nation's spending plans.

"We must find ways to prepare the 2026 budget in the most efficient manner and with the greatest benefit to the people, considering our limited resources," she said. 

The Prime Minister unveiled several key budget priorities, including maintaining investment and subsidy funding levels to sustain economic growth, whilst freezing operational budgets and workforce expansion. Instead, the focus will shift to enhancing workforce efficiency and ensuring equitable welfare distribution.

The administration's approach to fiscal management includes a strict policy on expenditure increases, with particular scrutiny of recurring costs. 

"I urge all agencies to consider increases only as necessary, and certainly to avoid increasing ongoing expenses, as these create a compounding burden each year," the Prime Minister cautioned.

Addressing current economic challenges, PM Paetongtarn highlighted recent initiatives such as the "You Fight, We Help" project and the 10,000 baht digital wallet programme. She also noted the tourism sector's recovery, with 1.3 million visitors in the first 12 days of 2024 generating over 6 billion baht in revenue.

The Prime Minister revealed plans to attend the World Economic Forum in Davos, Switzerland, where she intends to promote Thailand's investment potential and global competitiveness. She has also tasked the Ministry of Finance with improving revenue collection efficiency by benchmarking against comparable economies.

To reduce pressure on the national budget, the government is encouraging state enterprises to consider alternative funding sources, including loans and public-private partnerships (PPP). The Prime Minister also called on agencies with existing revenue or reserves to prioritise these funds for their core missions.

"With cooperation from all parties, we can push forward various initiatives for the benefit of our nation, the beloved monarchy, and all citizens equally," PM Paetongtarn concluded, addressing the nation's two million public servants.