Thailand has unveiled a modest increase in its fiscal spending, projecting a budget of 3.78 trillion baht ($110.7 billion) for the 2026 fiscal year, alongside a marginally reduced deficit of 860 billion baht. The announcement came from government officials on Tuesday as part of a medium-term fiscal strategy approved by the Cabinet.
The fiscal plan relies on anticipated economic growth rates ranging between 2.3% and 3.3%, with inflation expected to fall between 0.7% and 1.7% in 2026. The fiscal year 2026 will commence on October 1, 2025.
Forecasts suggest a public debt-to-GDP ratio of 67.3% by the conclusion of the 2026 fiscal year, a rise from the 65.6% projected for the end of 2025. The 2026 budget entails a 0.7% increase in spending compared to the planned 3.75 trillion baht for 2025, which itself marks an increase from the previous year.
Meanwhile, the deficit is expected to decrease by 1% from the previously forecasted 870 billion baht for the 2025 fiscal period. “The fiscal objectives outlined in the plan maintain a deficit budget approach to ensure economic stability, with a focus on gradually reducing the deficit to a more sustainable level in the medium term,” a government statement emphasized.
Discussions regarding the fiscal year 2026 budget are scheduled for January 3, as confirmed by an official from the Budget Bureau.
