Thailand projects spending of $117 billion for 2027 fiscal year

The budget for Southeast Asia's second-largest economy in the current fiscal year of 2026, which started in October, has been set at 3.780 trillion baht with a deficit of 788 billion baht.

The 2027 budget plan is based on expected economic growth of between 2.1% and 3.1% and inflation at 0.4% to 1.4%, according to a medium-term fiscal plan, which was approved by the cabinet last week.

The plan also projects a public debt-to-GDP ratio of 69.36% at the end of the 2027 fiscal year, up from 68.17% at the end of the 2026 year, the statement said, approaching the ceiling of 70%.

The 2027 budget plan would increase spending by 0.2% from the 2026 fiscal year, with the deficit falling by 8.37%.

"In implementing medium-term fiscal policies, the government is focusing on restoring the country's fiscal position to enhance financial stability and maintain its creditworthiness," the government said.

Thailand's economy has lagged its peers, weighed down by weaker tourism and manufacturing during a period of domestic political uncertainty and a border conflict with Cambodia. It grew just 1.2% annually in the third quarter, its slowest pace in four years.

Prime Minister Anutin Charnvirakul has promised to dissolve parliament by the end of January, with a general election likely to be held in late March.

($1 = 32.46 baht)