NESDC says full government vital to drive economy and tackle external risks

Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDC), said progress on the preparation of the fiscal 2027 expenditure budget would become clearer after a new cabinet is formed, which is expected to be completed within the first week of April 2026, to accelerate economic policy implementation and proceed with the annual budget process in the next stages.

“The formation of the new government should be completed before the Songkran festival. A fully empowered government is important for public administration because a caretaker government faces limitations in management, particularly in issuing legislation, borrowing, or entering into agreements that would bind the new government. In addition, the conflict in the Middle East, which may affect the economy, is another factor underscoring the need for a fully empowered government to take office as soon as possible.”

As for the timeline for the preparation of the 2570 budget, it depends on how quickly the government can be formed.

If a government can be established within the first week of April, the budget process would be delayed by only around one month from the normal schedule, under which the annual budget act would come into effect on October 1.

If the process is accelerated at the committee stage, for example, by reducing the budget scrutiny period from 105 days to around 60 days, the fiscal 2027 budget could be promulgated in the Royal Gazette in the second week of October.

In the next phase of budget preparation, the budgeting approach has also been adjusted at the provincial and provincial cluster levels.

The focus will be shifted away from projects centred on hardware or infrastructure, such as road construction or ponds, towards investment in projects related to job creation and labour skill standards, so that the budget can genuinely contribute to developing people’s capabilities.

In addition, the NESDC secretary-general proposed that the new government use the Reinvent Thailand platform as a mechanism for close consultation with the private sector in order to address structural problems and build confidence among foreign investors.

Danucha also spoke about the economic outlook and the challenges facing the economy in 2026.

Thailand’s economy was initially projected to expand by 2.0% in 2026, but the conflict in the Middle East has pushed global crude oil prices up to US$107 per barrel.

If prices rise to US$125, economic growth could slow to 1.6%, and if they reach US$150, growth may fall to 1.3%.

This energy crisis could affect transport costs and the number of long-haul tourists.

In addition, Thailand continues to face the challenge of high household debt.

Danucha also outlined the country’s adaptation strategy and long-term development plan, saying Thailand still has strengths in agriculture, with reservoir water levels at full capacity to fully support the food industry.

At the same time, the government is drafting the 14th National Economic and Social Development Plan (2028–2032), which will be driven by four guiding principles: Advancing Productivity, Promoting Inclusivity, Opportunities, and Shared Benefits, Elevating Adaptability, and Reinforcing Immunity.

This will be pursued alongside five pillars of development: Transform Economy, Upgrade Human Capital, Sustain Resources & Environment, Transfer Technology & Innovation, and, importantly, Reform Public Sector, in order to strengthen competitiveness and prepare Thailand for membership of the Organisation for Economic Co-operation and Development (OECD).