BANGKOK: Thai Prime Minister Paetongtarn Shinawatra will on Wednesday (May 28) propose a 3.78 trillion baht (US$115.5 billion) budget to parliament for the 2026 fiscal year, as her government seeks to support a sluggish economy facing steep US tariffs.
The draft budget bill, which will be debated in the house over the next four days, projects a 0.7 per cent rise in spending, and a 0.7 per cent drop in the budget deficit to 860 billion baht, or 4.3 per cent of gross domestic product, from the 2025 fiscal year that ends in September.
“A deficit budget policy is aimed at maintaining economic stability, including supporting a recovery and promoting growth at an appropriate level,” the bill said.
The budget plan projects growth at 2.3 per cent to 3.3 per cent for both 2025 and 2026, with inflation predicted at 0.5 per cent to 1.5 per cent. The economy expanded 2.5 per cent last year, lagging regional peers.
The plan did not take into account the potential impact of US tariffs.
Thailand faces a 36 per cent US tariff if a reduction cannot be negotiated before a moratorium expires in July. The United States, Thailand’s biggest export market, has set a 10 per cent baseline tariff for most countries while the moratorium is in place.
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