Thailand: State spending targets laid out for fiscal 2023

The government is planning a fiscal 2023 budget worth 3.185 trillion baht, with a deficit of 695 billion baht for the fiscal year, which starts next October.

According to Chalermphol Pensoot, director of the Budget Bureau, the budget was approved at yesterday’s meeting between Prime Minister Prayut Chan-o-cha and four economic agencies.

The planned deficit is 5 billion baht, or 0.71% lower than in fiscal 2022.

The four economic agencies comprise the Finance Ministry, the Budget Bureau, the National Economic and Social Development Council and the Bank of Thailand.

Mr Chalermphol said details of the fiscal 2023 budget will be presented to the cabinet meeting on Jan 4, while all state agencies are required to submit their proposals by Jan 14.

He said the fiscal 2023 budget is in line with the country’s 20-year national strategic plan, the 13th national economic and social development plan (2023-2027) and the government’s medium-term fiscal policy framework for 2023-26, which was approved by the cabinet on Tuesday.

Under the medium-term fiscal policy framework for 2023-26, the budget deficit is projected to be 695 billion baht in 2023, 710 billion in 2024, 723 billion in 2025, and 736 billion in 2026.

The government’s expenditure budget is estimated at 3.19 trillion baht in 2023, 3.27 trillion in 2024, 3.36 trillion in 2025, and 3.46 trillion in 2026.

Net state revenue for 2023-2026 is projected at 2.49 trillion baht, 2.56 trillion, 2.64 trillion and 2.72 trillion, respectively, for the four years.

The framework aims for 3.2-4.2% growth in 2023, 2.9-3.9% in 2024, and 2.8%-3.8% in 2025 and 2026.

The fiscal 2022 budget, starting on Oct 1 this year, totalled 3.10 trillion baht, with a deficit of 700 billion baht, up by 91 billion baht, or 15% higher than fiscal 2021.

Net state revenue for the fiscal 2023 budget is projected at 2.49 trillion baht, up 3.8% from 2.40 trillion in fiscal 2022.

The projection assumes economic growth of 3.2-4.2% in 2023.

Mr Chalermphol said the meeting also agreed the country’s economic stability remains volatile, while inflation is another key area of concern.

Source: https://www.bangkokpost.com/business/2236975/state-spending-targets-laid-out-for-fiscal-2023