According to local media, the Thai Government’s spokeswoman Narumon Pinyosinwat said of the THB3.2 trillion, regular budget will account for 74.7 percent or THB2.39 trillion, up 5.3 percent from fiscal 2019. The investment budget will account for 20.5 percent of the total, or THB655 billion.

Thailand's budget of THB3.2 trillion (about USD104 billion) for fiscal year 2020 rises 6.7 percent from fiscal 2019 (Photo: Reuters)

The government estimates revenue collection at THB2.73 trillion, up 7.1 percent from the current fiscal year. Fiscal 2020 will run with a budget deficit of THB469 million, up 4.3 percent from fiscal 2019.

Narumon quoted Prime Minister Prayut Chan-o-cha as saying that the public should not be much concerned about the budget deficit since the deficit budget is largely set aside for investment that can generate income.

Thailand has run a budget deficit since fiscal 1999, except for fiscal 2005 and 2006. The Finance Ministry is eager to curb the deficit to strengthen its fiscal position as a cushion against any economic crisis that could erupt in the future.

The ministry recently estimated that the country would reach a balanced budget by 2026 if the principal and interest payments were excluded, or by 2030 if they were included.

The Thai Government forecasts economic growth of 3 – 4 percent for 2020 with inflation between 0.8 – 1.8 percent./.