Macroeconomics/fiscal budget 2024

Chatrudee Theparat

The 2024 fiscal year is set at 3.35 trillion baht.

The cabinet approved a framework of the fiscal year 2024 of 3.35 trillion baht, with a deficit of 593 billion baht which is lower than the fiscal year 2023.

The fiscal 2024 budget framework was endorsed by the Monetary and Fiscal Policy Committee chaired by Prime Minister Prayut Chan-o-cha last week.

Chalermphol Pensoot, director of the Budget Bureau, said under the approval of the fiscal year 2024 framework is an amount of 3.35 trillion baht expenditure, with a deficit of 593 billion baht which is lower than a deficit of 695 billion baht in the fiscal 2023,

He said a deficit of 593 billion baht represents around 3% of gross domestic products (GDP).

“The conducting budget in the 2024 fiscal year will be the first year to be reliant on the medium-term fiscal policy framework for fiscal 2024-2027. The government targets to have a deficit of not more than 3% of GDP in order to pave the way for Thailand to reach a balanced budget for fiscal stability.”

He said the government expects to collect 2.75 trillion baht in revenue in 2024, up 10.7% from its collection in 2023. In fiscal 2024 budget, the government will maintain the investment proportion at 20%, or 700 billion baht.

The four economic agencies include the Finance Ministry, the Budget Bureau, the National Economic and Social Development Council and the Bank of Thailand will meet together to confirm the framework, and later to ask for its approval from the cabinet on January 12, 2023. State agencies are required to submit their proposals to the Budget Bureau from January 27, 2024.

The fiscal 2023 budget aims to have an expenditure of 3.18 trillion baht, with a deficit of 695 billion baht which is equal to 3.7% of GDP.

Finance Minister Arkhom Termpittayapaisith said the cabinet approved the medium-term fiscal policy for 2024-2027 with a target to reduce a budget deficit between fiscal year 2024 and 2027 in each year of not more than 3% of GDP. As a result, it expects its deficit will fall to 2.79% by the end of the fiscal year 2027.

 Finance Minister Arkhom Termpittayapaisith

He said the cabinet also approved a headline inflation target of 1% to 3% for 2023 which keeps unchanged from this year.

“The government wanted to send a signal to the public that the government commits to continuing to control inflation to avoid negative problems in order to keep the economy going forward.”

Related agencies have worked together more closely, as well as the Bank of Thailand to monitor inflation issues.

In 2024, the government projects the economy will grow 3.3-4.3% and has 1-2% inflation. The economic growth is projected to be between 2.9% and 3.9% in 2025 and 2026. Inflation in 2025 is projected at 1.2%-2.2% and 1.3-2.3% in 2026. In 2027, the economic growth is projected at 2.8%-3.8% and its inflation rate is 1.4%-2.4%.