According to finance officials on Tuesday, Thailand’s cabinet has endorsed a 3.78 trillion baht ($109.2 billion) budget plan for the 2026 fiscal year, beginning on October 1, 2025, alongside approving soft loans to aid smaller enterprises.
As explained by Deputy Finance Minister Julapun Amornvivat, the budget features an 860 billion baht ($24.93 billion) deficit and is designed to invigorate economic growth. The government indicated last month that the budget plan projects a 0.7% increase in spending and a 1% reduction in the deficit for the fiscal year.
Julapun mentioned that the finance ministry will focus on optimizing revenue collection efforts, with the Bank of Thailand (BOT) responsible for implementing strategies to align headline inflation with the 2% mark, which is the midpoint of its 1% to 3% target range.
Notably, annual headline inflation reached 1.23% in December, marking a return to the target range for the first time in seven months, while inflation averaged 0.4% in 2024.
The deputy minister emphasized that the central bank must maintain the competitiveness of the Thai baht, ensuring the exchange rate allows Thai businesses to effectively compete internationally, although he did not specify particular exchange rate levels.
Concurrently, Deputy Finance Minister Paopoom Rojanasakul also announced the cabinet’s approval of 20 billion baht in soft loans aimed at supporting smaller businesses that struggle to access credit, with the loans carrying an interest rate of 3% for a period of three years.
