Fiscal 2021 budget of B3.3tn heads to cabinet

Fiscal 2021 budget of B3.3tn heads to cabinet

Agencies forecast B523bn shortfall

Construction work proceeds on the Orange Line. The fiscal 2021 investment budget is projected at 693 billion baht, or 21% of the total. (Photo by Varuth Hirunyatheb)
Construction work proceeds on the Orange Line. The fiscal 2021 investment budget is projected at 693 billion baht, or 21% of the total. (Photo by Varuth Hirunyatheb)

The government has set a fiscal 2021 budget of 3.3 trillion baht with a deficit of 523 billion baht.

The fiscal 2021 budget starting next Oct 1 is scheduled to be proposed for cabinet approval on Jan 7.

Narumon Pinyosinwat, a government spokeswoman, said a joint meeting of four key state planning agencies -- the National Economic and Social Development Council, the Bank of Thailand, the Budget Bureau and the Fiscal Policy Office -- chaired by Prime Minister Prayut Chan-o-cha, approved on Thursday the fiscal 2021 budget, which is 100 billion baht or 3.1% bigger than the fiscal 2020 blueprint.

The government approved a fiscal budget of 3.2 trillion baht in 2020, with a budget deficit of 469 billion.

Officials have set a revenue target of 2.777 trillion baht in fiscal 2021, up from 2.73 trillion in the current fiscal year.

The fiscal 2021 budget is based on an economic growth forecast of 3.1-4.1% and an inflation rate of 0.7-1.7%.

Public debt is estimated at 8.24 trillion baht, accounting for 45% of GDP, which is projected at 18.4 trillion baht in fiscal 2021.

The investment budget is projected at 693 billion baht, accounting for 21% of the total budget, up by 37 billion baht from fiscal 2020.

The budget in fiscal 2021 will focus mainly on social and economic restructuring, economic growth stability, income redistribution to remote areas, local economy development and income disparity reduction.

On Tuesday, the cabinet approved the medium-term fiscal policy framework for 2021-24. Under the framework, the government aims for economic growth during 2021-24 of 3.1-4.1%, with an average inflation rate of 0.7-1.7% boosted by active domestic consumption, recovering exports and growing private and state investment.

Revenue is estimated at 2.77 trillion baht in 2021, 2.81 trillion baht in 2022, 2.91 trillion baht in 2023 and 3.03 trillion baht in 2024.

The budget is estimated at 3.33 trillion baht with a deficit of 517 billion baht in fiscal 2022; 3.14 trillion baht with a deficit of 502 billion baht in fiscal 2023; and 3.50 trillion baht with a deficit of 475 billion baht in 2024.

Public debt is forecast at 9.04 trillion baht in 2022, some 47% of GDP, with a figure in 2023 of 9.82 trillion baht, making up 48.3%. Public debt is seen at 10.4 trillion baht in 2024, accounting for 48.6% of GDP.

GDP is projected to amount to 18.4 trillion baht in 2021, rising to 19.4 trillion baht in 2022, 20.5 trillion baht in 2023 and 21.7 trillion baht in 2024.


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