Keep budget deficit lower than 3% of GDP, NESDC advised
The National Economic and Social Development Council (NESDC) has recommended that the government keep the budget deficit under 3% of gross domestic product (GDP) in the years to come to maintain the stability of the country’s finances.
The council on Wednesday gave its opinion on the proposed budget for fiscal 2025 to help the Cabinet in its considerations. The budget for the next fiscal year lists government spending of 3.752 trillion baht and will run a deficit of 865.7 billion baht, approximately 4.24% of the estimated GDP at 19.57 trillion baht.
The NESDC said that while Thai economy in 2025 is expected to improve, the budget deficit is still high and household debts are likely to continue to rise due to the financial policies put in place during the Covid-19 situation.
Thailand may have to run a larger deficit in case of crises or emergencies caused by external factors, the council warned.
The NESDC advised the Finance Ministry, the Budget Bureau, and related agencies to focus on collecting state revenues to meet the targets, as well as put measures in place to improve expenditure efficiency. Such efforts would keep the budget deficit at under 3% of GDP in the years to come, thus further strengthening the country’s finances.
The Budget Bureau has set the budget deficit plan from 2025 to 2028 as follows:
2025: 865.7 billion baht deficit, 4.24% of GDP
2026: 703 billion baht deficit, 3.42% of GDP
2027: 693 billion baht deficit, 3.21% of GDP
2028: 683 billion baht deficit, 3.01% of GDP
