Thailand's 2026 Fiscal Year Budget Plan

BANGKOK (Reuters) – Thailand is planning a slight increase in spending, proposing a budget of 3.78 trillion baht (approx. $110.7 billion) for the 2026 fiscal year. The government announced on Tuesday that the deficit is expected to decrease to 860 billion baht for that year.

The budget is structured on anticipated economic growth ranging from 2.3% to 3.3% and inflation between 0.7% and 1.7% in 2026. These projections were outlined in a medium-term fiscal plan, which was approved by the cabinet.

The 2026 fiscal year commences on October 1, 2025. The plan estimates a public debt-to-GDP ratio of 67.3% by the end of 2026, up from 65.6% at the end of 2025.

The 2026 spending reflects a 0.7% rise from the 3.75 trillion baht budget projected for 2025, which already anticipates increased spending from 2024. The deficit is expected to reduce by 1% compared to the 870 billion baht expected for 2025.

The government noted that maintaining a deficit budget is essential for economic stability while focusing on gradually reducing the deficit to a suitable level in the medium term. A meeting to discuss the 2026 budget plan is scheduled for January 3.

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