Bangkok (VNA) – Thailand's government is pressing ahead with a 3.78 trillion THB (113.8 billion USD) budget for fiscal year 2027, including a 788 billion THB deficit, as it seeks to support a fragile economy while keeping public debt within the country's fiscal discipline ceiling.
Presenting the Fiscal Year 2027 Budget Bill to the House of Representatives on June 29, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the spending plan would serve as a key mechanism to drive economic growth and improve people's quality of life.
The proposed budget totals 3.788 trillion THB, while the government expects 3 trillion THB in net revenue available for allocation, resulting in a 788 billion THB budget deficit. Ekniti said deficit spending remains necessary to preserve economic stability and support growth, even though public debt stood at 66.66% of GDP in April 2026, close to the country's 70% fiscal discipline ceiling
The Thai government estimates total revenue for fiscal 2027 at 3.145 trillion THB , up 2.7% from the previous year. The budget was prepared against a backdrop of moderate economic growth, with Thailand's economy projected to expand by 1.7–2.7% in 2027.
The growth outlook is expected to be supported by a recovery in global trade and domestic consumption, while inflation is forecast at 0.5–1.5%.
However, Ekniti warned that Thailand continues to face significant uncertainties and downside risks, including prolonged tensions in the Middle East, uncertainty surrounding trade protectionist measures adopted by major economies, and the growing impact of climate change. Against this backdrop, the government has decided to maintain a deficit budget in fiscal 2027 to help stabilise the economy and sustain growth.
Despite continuing deficit spending, the government remains committed to long-term fiscal sustainability and aims to reduce the fiscal deficit to below 3% of GDP by 2029, he said.
Ekniti added that the 2027 budget was formulated under principles designed to ensure value for money and improve spending efficiency. The government will also pursue economic support measures such as Thailand FastPass, aimed at attracting and accelerating investment, and SMEs Plus, which is intended to expand income opportunities for small and medium-sized enterprises.
The budget is allocated across six strategic priorities: national security, competitiveness enhancement, human resource development, social opportunity and equality, environmental development, and public sector rebalancing and reform.
Ekniti affirmed that the government would manage public spending in strict compliance with the law and the country's fiscal discipline framework to ensure taxpayers' money is used effectively. He added that the government would ensure public funds reach the people, maximise Thailand's growth potential, and promote inclusive and sustainable development./.
