Bangkok: The Prime Minister has presented the draft of the 2016 Budget Act to Parliament, proposing a budget of 3.78 trillion baht. The budget aims for GDP growth between 2.3-3.3%, with concerns about US taxes potentially impacting the Thai economy. The budget outlines six main strategies to ensure efficient and beneficial use of funds.
According to Thai News Agency, the Prime Minister, Ms. Paethongtarn Shinawatra, emphasized that the budget was crafted with the expectation that the Thai economy will expand within the projected range in 2026. This expansion is anticipated due to continuous consumption growth, private investment, and a recovering tourism sector. However, the Thai economy faces risks from global trade barriers, geopolitical conflicts, and climate change.
Global trade policies pose increased risks for the Thai economy, and the inflation rate might fall below the target range due to global oil prices and government measures. These factors help alleviate living costs and reduce business expenses. The Monetary Policy Committee decided to reduce the policy interest rate to 1.75 percent per annum at the April 2025 meeting to align with economic trends and manage risks.
The budget for 2016 is structured with expenditure set at 3.78 trillion baht, a 0.7% increase from the previous fiscal year, representing 18.9% of GDP. Regular expenses account for 2.65 trillion baht, while investment expenses are set at 864,077 million baht. The principal repayment expense is 151,200 million baht, aimed at state enterprise investment loans.
The budget allocation strategy involves six core strategies and 65 government operating plans. The Security Strategy allocates 415,327 million baht for addressing issues in southern border provinces and enhancing national security. The Competitiveness Strategy, with a budget of 394,611 million baht, focuses on economic growth and infrastructure development, particularly in special economic zones.
The Human Resources Strategy allocates 605,927 million baht towards education and healthcare improvements, aiming to produce medical professionals and enhance public health systems. The Social Equality Strategy, with a budget of 942,709 million baht, aims to provide universal welfare and reduce inequalities.
Environmental quality improvement is addressed through a 147,216 million baht allocation, focusing on natural resource management. The Public Sector Management Strategy, with a budget of 605,441 million baht, aims to enhance public service efficiency and reduce corruption.
An additional 669,365 million baht is allocated for unforeseen emergencies, government debt management, and treasury reimbursement. The budget intends to drive sustainable economic growth and improve the quality of life for all citizens, underpinned by a deficit budget policy to maintain economic stability.
The Prime Minister concluded that the proposed budget aims to revitalize the economy, improve quality of life, and ensure maximum benefit from government spending. The intention is for tangible national development results that benefit citizens and ensure steady progress for the country.