Thai government approves fiscal 2020 budget hinh anh 1Thailand's budget of 3.2 trillion baht (about 104 billion USD) for fiscal year 2020 rises 6.7 percent from fiscal 2019 (Photo: Reuters)

Bangkok (VNA) – The Thai cabinet has endorsed a budget of 3.2 trillion baht (about 104 billion USD) for fiscal year 2020, up 6.7 percent from fiscal 2019, which ends on September 30.

According to local media, the Thai Government’s spokeswoman Narumon Pinyosinwat said of the 3.2 trillion baht, regular budget will account for 74.7 percent or 2.39 trillion baht, up 5.3 percent from fiscal 2019. The investment budget will account for 20.5 percent of the total, or 655 billion baht.

The government estimates revenue collection at 2.73 trillion baht, up 7.1 percent from the current fiscal year. Fiscal 2020 will run with a budget deficit of 469 million baht, up 4.3 percent from fiscal 2019.

Narumon quoted Prime Minister Prayut Chan-o-cha as saying that the public should not be much concerned about the budget deficit since the deficit budget is largely set aside for investment that can generate income.

Thailand has run a budget deficit since fiscal 1999, except for fiscal 2005 and 2006. The Finance Ministry is eager to curb the deficit to strengthen its fiscal position as a cushion against any economic crisis that could erupt in the future.

The ministry recently estimated that the country would reach a balanced budget by 2026 if the principal and interest payments were excluded, or by 2030 if they were included.

The Thai Government forecasts economic growth of 3 – 4 percent for 2020 with inflation between 0.8 – 1.8 percent. -VNA