The budget deficit for the 2017 fiscal year will not exceed this year's 390 billion baht and investment expenditure will account for at least 20%, says the Budget Bureau chief.
Next fiscal year's public expenditure figure has not been finalised yet, but state agencies have proposed an aggregate budget of 4.29 trillion baht, said Budget Bureau director Somsak Chotrattanasiri. The bureau had trimmed the figure to 3.4 trillion, he said.
The 2017 budget expenditure will be set based on assumptions that the country's nominal GDP growth next year will be 6% and inflation 2%, said Mr Somsak after a meeting with the National Economic and Social Development Board, the Bank of Thailand and the Finance Ministry.
The 2017 fiscal budget will include the government's plan to develop logistics, a grassroots economy and 10 targeted industrial clusters.
The government plans budget expenditures of 2.72 trillion baht in fiscal 2016, ending on Sept 30, and revenue collection of 2.33 trillion, leaving 390 billion in deficit.
Public spending is the main engine to help the country fend off potentially dismal exports and an uneven global economic recovery, led by China.
The 2017 fiscal budget is scheduled to seek cabinet approval on Feb 1. The Education Ministry continued to receive the largest budget allotment, he said.
In related news, Finance Minister Apisak Tantivorawong said the ministry estimates 4-5% higher revenue collection this fiscal year.
The government's revenue collection surpassed its target by 64.5 billion baht during the first three months of fiscal 2016, thanks largely to extra revenue of 40.3 billion baht from the first batch of payments for the 1800-megahertz 4G licences. The government gathered 581 billion baht during the three months to December, 12.5% higher than targeted.
Revenue collection was off target in 2014 and 2015. Its net revenue collection after deducting contributions from local administration organisations for fiscal 2015 was 2.21 trillion baht, 5.1% below target or 117 billion. For fiscal 2014, it mustered 2.07 trillion baht in revenue, 201 billion short.