Government officials have clarified that public investment is not being reduced despite a reported decrease in the direct investment budget for fiscal year 2027. Spokeswoman Rachada Dhnadirek explained that while the fiscal 2027 budget bill allocates 789 billion baht for direct government investment, a reduction of 72.5 billion baht (8.4%) from fiscal 2026, this figure does not represent the entirety of public spending.
Comprehensive Public Investment Strategy
Ms. Dhnadirek detailed that significant public investment continues through various other avenues. State-owned enterprises are slated to invest 286 billion baht, public-private partnership (PPP) projects will receive 40.6 billion baht, and the Thailand Future Funds will contribute 10 billion baht. These supplementary investments total over 330 billion baht, pushing the overall public investment for fiscal 2027 to an estimated 1.12 trillion baht. This figure represents a slight increase compared to the approximately 1.11 trillion baht invested in fiscal 2026.
The government acknowledges the concerns raised by lawmakers and the public regarding the overall budget and its investment components. The fiscal 2027 budget, which recently passed its first parliamentary reading, totals 3.788 trillion baht, marking a modest 0.2% increase from the previous fiscal year. Ms. Dhnadirek emphasized that the budget preparation process was guided by a targeted approach, prioritizing spending within fiscal limitations while aiming to support citizens, ensure economic stability, maintain fiscal discipline, and foster long-term national development.
Strategic Budget Allocation
The budget was not formulated by simply adjusting individual spending lines. Instead, each allocation was assessed for its potential to address specific national challenges and enhance the country’s economic prospects. This strategic methodology ensures that public funds are utilized effectively to achieve defined objectives.
Addressing the Budget Deficit
Regarding the budget deficit, Ms. Dhnadirek stated that the government is not incurring debt for uncontrolled expenditures. Instead, the deficit is intended to stimulate the economy during a period of global economic headwinds, provide essential support to the public and vulnerable populations, and facilitate a gradual return to fiscal balance. The projected deficit for fiscal 2027 is 788 billion baht, a reduction from the 860 billion baht deficit in fiscal 2026. As a percentage of GDP, the deficit is expected to decrease from 4.4% in fiscal 2026 to 3.9% in fiscal 2027.
Key Policy Initiatives and Spending Priorities
A significant portion of the fiscal 2027 budget, totaling 1.232 trillion baht, is dedicated to the Anutin Charnvirakul administration’s “10 Plus” policy agenda. This agenda focuses on several critical areas:
- Support for low-income households and the elderly.
- Investment in local communities and education.
- Assistance for small and medium-sized enterprises (SMEs).
- Promotion of trade and the green economy.
- Development in artificial intelligence (AI) and future-oriented industries.
Furthermore, spending directly benefiting the public through welfare, education, and public health initiatives amounts to 639 billion baht. This represents a substantial increase of 43.2 billion baht compared to the previous fiscal year, underscoring the government’s commitment to social well-being.
Conclusion
In summary, government officials assert that the fiscal 2027 budget reflects a strategic reallocation of resources rather than a reduction in public investment. By leveraging diverse investment channels and prioritizing key policy objectives, the government aims to stimulate economic growth, support its citizens, and ensure the nation’s long-term prosperity while maintaining fiscal prudence.
