FX.co ★ Thailand Unveils 2026 Budget Amid Economic Headwinds

On Wednesday, Thai Prime Minister Paetongtarn Shinawatra introduced a draft budget totaling THB 3.78 trillion for fiscal year 2026 to the national parliament. This proposal is aimed at stimulating the country’s lagging economic growth amidst prevailing global uncertainties. The budget outlines a 0.7% increase in government spending, alongside a projected slight reduction in the fiscal deficit, cutting it to THB 860 billion, or 4.3% of GDP. The government anticipates GDP growth between 2.3% and 3.3%, with inflation rates expected to fall between 0.5% and 1.5% for the years 2025 and 2026. Importantly, this plan does not account for possible increases in U.S. tariffs, which might escalate to 36% should a moratorium lapse in July, potentially impacting Thailand's export sectors. Parliament is set to debate the proposal through Saturday, culminating in a vote that requires a majority from the attending lawmakers for approval. Although the bill is anticipated to pass, there are rising tensions within the Pheu Thai-led coalition, particularly with influential partner Bhumjaithai, over the contentious proposal to legalize casinos.