The Finance Ministry and the Budget Bureau are planning a meeting to consider potential revisions to the Budget Bill for the upcoming fiscal year, in anticipation of the policies of the newly elected government. The bill, which was approved in March by the previous government, set a state budget of 3.35 trillion baht for the fiscal year commencing in October.
Ministry officials have revealed that both the Budget Bureau and the Finance Ministry will conduct a thorough examination of the budget to determine if adjustments need to be made to better align with the new government’s policies. The alternative option of completely rewriting the budget bill is also on the table, although it would necessitate a review of the country’s estimated revenues, expenditures, and other economic indicators.
The Move Forward Party, under the leadership of Pita Limjaroenrat, is currently attempting to form a governing coalition consisting of eight political parties with a total of 313 Members of Parliament, following their victory in the recent election.
Within the 3.35 trillion baht allocated in the Budget Bill, 2.49 trillion baht is earmarked for regular expenditures, 717 billion baht for investment in development projects, 117 billion baht for loan repayments, and an additional 33.7 billion baht set aside as a treasury reserve.
Thailand’s public debt currently stands at 10.79 trillion baht, representing 61.2% of the country’s annual gross domestic product (GDP) of 19.42 trillion baht. This level of public debt remains below the ceiling of 70% of GDP set by the State Committee on Monetary and Financial Policies.
The Public Debt Management Office has projected that the country’s public debt will increase to 61.73% of GDP by the end of the current fiscal year. This leaves a margin of approximately 8-9% of GDP, equivalent to 1.5 trillion baht, for additional loans to stay within the 70% threshold. (NNT)
