BANGKOK, Thailand – Prime Minister Paetongtarn Shinawatra presented the draft of the 2026 Annual Budget Expenditure Act to the House of Representatives at the Thai Parliament on May 28. The proposed budget totals 3.78 trillion baht, with an economic growth target of 2.3% to 3.3%. The Prime Minister emphasized that this budget is structured based on projected economic trends, which are driven by steady private consumption, investment, and a rebound in the tourism sector.
However, she also expressed concern over potential economic impacts from U.S. trade protectionism, geopolitical tensions, and climate change.
Thailand’s economy faces increasing risks from global trade policies, though overall inflation is expected to fall below target due to lower global crude oil prices and government measures aimed at easing living costs and reducing business expenses. The overall financial environment remains tight. In response, the Monetary Policy Committee recently lowered the policy interest rate to 1.75% per annum in April 2025 to align with changing economic conditions and inflation trends.
For 2026, inflation is projected to range between 0.5%–1.5%, and the current account is expected to show a surplus equivalent to 2.3% of GDP. The budget structure consists of:
-Total expenditure: 3.78 trillion baht, up by 27.9 billion baht or 0.7% from FY2025, accounting for 18.9% of GDP.
-Regular expenses: 2.65 trillion baht, down by 28.1 billion baht or 1%, making up 70.2% of the total.
-Treasury reserve repayment: 123.5 billion baht, newly allocated at 3.3% of the budget.
-Capital investment: 864.1 billion baht, a decrease of 68.3 billion baht or 7.3%, or 22.9% of the total.
-Debt repayment: 151.2 billion baht, an increase of 1.1 billion baht or 0.7%, representing 4% of the budget.
The budget is allocated under six strategic pillars across 65 operational plans:
- National Security (415.3 billion baht) – Focuses on resolving unrest in the southern border provinces, ensuring safety of life and property, promoting equal access to education, and countering extremist ideologies. It also funds anti-drug operations, national institution security, border and maritime safety, and disaster management systems.
- Competitiveness Enhancement (394.6 billion baht) – Aims to drive stable and sustainable economic growth through development of special economic zones, especially the Eastern Economic Corridor (EEC), targeting investment of over 100 billion baht. Projects include the high-speed rail connecting three airports and the establishment of advanced medical hubs. The strategy also supports 6,000 skilled workers for targeted industries and promotes the digital economy through government cloud infrastructure and cybersecurity.
- Human Capital Development (605.9 billion baht) – Seeks to cultivate well-rounded, morally sound citizens with good quality of life. It supports the production of at least 42,400 medical professionals and rural deployment of over 1,000 doctors annually. Educational reform, lifelong learning, and digital education platforms are prioritized.
- Social Equality (942.7 billion baht) – Ensures universal access to welfare and public services while reducing inequality. Measures include equitable land distribution, grassroots economy promotion, support for an aging society, local government empowerment, student aid, and allowances for the elderly and disabled.
- Green Growth and Environmental Quality (147.2 billion baht) – Funds conservation, restoration, and management of natural resources and pollution, as well as integrated water resource strategies to improve national water security.
- Government Reform (605.4 billion baht) – Aims to modernize public administration and service delivery through digital transformation and high-performance government systems.
The Prime Minister reaffirmed the administration’s commitment to efficient budget utilization for the maximum benefit of the Thai people. (TNA)
