Govt outlines steps to reduce deficit

The Finance Ministry will propose to the cabinet next week the revised medium-term fiscal framework, aiming to reduce the fiscal deficit to no more than 3% of GDP by 2029 in a bid to restore credit rating agencies' confidence in Thailand's fiscal position.

- WICHIT CHANTANUSORNSIRI

Speaking after the Fiscal and Monetary Policy Committee meeting yesterday, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said that in the fiscal 2026 budget — the current expenditure plan — the government has prepared a deficit budget of 4.4% of GDP.

However, he noted that the draft fiscal 2027 budget, which is now being prepared, will show a substantial decline in the deficit-to-GDP ratio.

According to Mr Ekniti, the new medium-term fiscal framework will be guided by three key principles.