Budget for 2026 anticipated to drive economic expansion, according to Paetongtarn's assurance.
Thailand's Prime Minister, Paetongtarn Shinawatra, expressed optimism on Wednesday regarding the fiscal year 2026 budget's potential to drive economic growth. The budget is designed to benefit both the public and private sectors, according to the Prime Minister.
Budget Amid Opposition Criticism
During a press conference ahead of a special House meeting to discuss the 2026 budget bill, Paetongtarn replied to criticisms from the opposition. Opponents claim that the proposed spending does not adequately address ongoing economic challenges, particularly in light of the looming threat of steep import tariffs from the US government.
Economic Stimulus and Budget Adjustments
Paetongtarn asserted that the budget would offer crucial economic stimulus. She emphasized that the spending plan had been reviewed and modified by multiple government agencies. The Prime Minister further noted that the government had decided to reallocate the remaining 157 billion baht from the current emergency fund, initially earmarked for a 10,000-baht handout, towards economic stimulus initiatives instead.
Trade Tensions and Budget Allocations
The Prime Minister remained confident that the budget allocations would meet their objectives. She also disclosed that the government had adjusted budget allocations in response to the US threat of trade tariffs against Thailand.
In response to her father, former Prime Minister Thaksin Shinawatra's proposal to use the 157 billion baht to combat drug trafficking, Paetongtarn stated that such a measure could not be executed at the present moment due to already allocated funding for drug control efforts. However, she invited support from non-governmental organizations addressing social issues.
Regarding Thaksin's plans to monitor communities for drug trafficking, Paetongtarn noted that such activities were personal and unrelated to the government.
Key Elements of the Strategy
The Prime Minister's strategy for economic growth involves several crucial components, including efforts to stimulate economic recovery, enhance national infrastructure, and improve citizens' quality of life. The budget targets a GDP growth rate of 2.3% to 3.3% in 2026, driven by consumer spending, private investment, and tourism recovery.
The budget includes investments in infrastructure development and competitiveness enhancements, and allocations for social equity and human development to ensure the benefits of economic growth are felt across society.
The budget aims to maintain stable inflation rates and a current account surplus, contributing to overall economic stability.
- In the midst of international trade tensions, the Prime Minister, Paetongtarn Shinawatra, announced that the budget was adjusted to respond to the US threat of tariffs against Thailand.
- The 2026 budget is designed not only to stimulate economic recovery but also to benefit specific sectors, such as tourism, through investments in infrastructure and competitiveness enhancements.
- Amidst ongoing criticisms from the opposition, the Prime Minister explained that the budget's goal is not only to drive economic growth but also to address social issues, with allocations for social equity and human development.
