Finance Minister Eyes 100bn Baht Budget Transfer to Fortify Economy

 

 

Finance Minister Ekniti Nitithanprapas moves to claw back idle procurement funds for a 100-billion-baht stimulus package to counter global economic shocks.

 

 

Thailand’s Deputy Prime Minister and Finance Minister, Ekniti Nitithanprapas, has announced plans for a major fiscal reallocation, targeting approximately 100 billion baht to safeguard the national economy against global volatility.

 

The proposed measure involves a formal Budget Transfer Act to redirect funds from state projects that fail to initiate procurement by the end of April.

 

Expressing candid concern over the current fiscal trajectory, Ekniti admitted that revenue collection for the year is at risk of missing targets.

 

He attributed this to a slowing economy dampened by the ongoing energy crisis and geopolitical conflicts, warning that the government must pivot its strategy to handle a succession of looming global crises.
 

 

 

 

Strategic Procurement Clawbacks

The Ministry’s strategy focuses on reclaiming capital from "stagnant" expenditure. Key measures include:

 

The Termination of Idle Projects: Reclaiming budgets from state agencies that have not commenced procurement processes by the 30 April deadline.

 

Expenditure Consolidation: Cutting non-essential spending and adjusting "K-Factors"—the price escalation indices used in government construction contracts—to reflect current market conditions.

 

The minister emphasised that while the government could technically use an Emergency Decree to expedite the transfer, a formal Act of Parliament is the preferred route.

 

"We will proceed with a Budget Transfer Bill to ensure total transparency and public accountability," Ekniti stated.
 

 

 

 

Global Consultations and Debt Management

In a move to align Thai policy with international trends, the Finance Minister is scheduled to hold high-level talks with World Bank officials and major credit rating agencies during the Songkran period.

 

These discussions will focus on how sovereign nations are adapting to global economic shocks, specifically regarding the sustainability of public debt.

 

Ekniti noted that while many countries maintain higher debt levels than Thailand, any decision to adjust the national debt ceiling would require a transparent and rigorous justification.

 

 

 

Fiscal Status and the 70% Ceiling

Under the State Fiscal Responsibility Act B.E. 2561, Thailand’s public debt ceiling is currently capped at 70% of GDP. As of February 2026, the national debt stood at 66.09% of GDP.

 

While the country currently remains within its legal limits, the proposed 100-billion-Baht reallocation is seen as a crucial move to maintain liquidity and provide economic stimulus without immediately breaching the statutory debt threshold.