Bangkok: Sirikanlaya has expressed confidence in Rakchanok's qualifications for the role of Vice President of the Budget Committee, amidst concerns about Thailand's economic outlook.
According to Thai News Agency, Ms. Sirikanya Tansakul, a member of the People's Party and part of the committee reviewing the 2026 fiscal budget bill, highlighted issues discussed at the recent budget committee meeting. The meeting, which involved four key agencies responsible for drafting the 2026 fiscal budget, revealed a bleak economic forecast. The Gross Domestic Product (GDP) is expected to grow by only 1-2 percent in 2025 and drop to 1.6 percent in 2026, raising concerns about meeting revenue targets and the potential for increased public debt.
The anticipated GDP decline poses significant challenges for government revenue. It is estimated that the government's income could decrease by approximately 60 billion baht if the GDP falls as predicted. This shortfall could impact the planned 3.78 trillion baht budget, especially since the government's borrowing capacity is nearly exhausted, with only 17 billion baht available for additional borrowing.
In response to these challenges, discussions with the Ministry of Finance explored solutions such as adjusting excise taxes. Two proposals were made: firstly, an increase in oil taxes, which could generate an additional 3 billion baht per month; secondly, a restructuring of the vehicle tax system. Despite these proposals, there remains uncertainty about how to compensate for the revenue shortfall, with concerns about relying on dividends from underperforming state enterprises and fluctuating interest rates.
The meeting also addressed the ratio of public debt to GDP, which is projected to reach 69 percent by the end of fiscal year 2026. The rising public debt ratio may necessitate a government resolution to increase the public debt ceiling by 2027. The Ministry of Finance acknowledged this possibility, indicating that future administrations might need to address these fiscal challenges.
Despite the economic concerns, Ms. Sirikanya highlighted the opposition's strategy to adjust expenditure, targeting a 50 billion baht reduction in unnecessary budgets. This move aims to address revenue shortfalls and mitigate risks of corruption in government projects. Ms. Sirikanya also emphasized the need for flexibility in budget considerations to ensure efficient governance.
Furthermore, the Prachachon Party has nominated Ms. Ratchanok Srinok as the 18th Vice Chair of the Budget Committee. Ms. Sirikanya affirmed her confidence in Ms. Ratchanok's qualifications, noting the opportunity for the opposition to contribute significantly to the committee's work, especially in light of previous successes in elevating opposition members to leadership roles within the committee.