The cabinet has approved the fiscal 2026 budget framework of 3.78 trillion baht, with a budget deficit of 860 billion baht, which is 5 billion lower than the 2025 budget.
According to government spokesman Jirayu Huangsab, the 2026 budget framework, which was approved by the Finance Ministry, Bank of Thailand, National Economic and Social Development Council, and the Budget Bureau, will be effective from Oct 1, 2025 to Sept 30, 2026.
The budget is 27.9 billion baht more than the fiscal 2025 budget.
The 2026 budget deficit framework sets expected government revenue at 2.92 trillion baht, which is 33 billion baht higher than the revenue forecast for fiscal 2025.
The 2026 budget includes 2.645 trillion baht for regular expenditures and 120 billion for compensating the treasury, while investment expenditures have not yet been disclosed by the government.
Deputy Finance Minister Julapun Amornvivat said the high budget deficit is necessary to stimulate the economy and drive economic growth.
He said the budgetary process must comply with fiscal discipline and adhere to the proportions set by the State Financial and Fiscal Discipline Act.
The deficit frameworks must follow the legal requirements. The next step involves reviewing the proposed budget and allocating it appropriately, said Mr Julapun.
Deputy Finance Minister Paopoom Rojanasakul said the government still needs to stimulate the economy to create momentum.
By Jan 29, the Finance Ministry is scheduled to distribute 10,000 baht each to roughly 4 million Thais aged 60 and older.
The government is also preparing an economic stimulus project for the low tourism season, he said.
Mr Paopoom mentioned the inflation target this year, which the Finance Ministry and the central bank set at a range of 1-3%, with a midpoint of 2%.
Inflation last year was estimated at 0.4%, below the lower end of the range, he said.
"The reason the central bank has not lowered the policy rate is it expected inflation to fall within the target range in 2024, but prices were outside the target," said Mr Paopoom.
He said the ministry remains committed to assisting small and medium-sized enterprises (SMEs) that have limited access to credit from commercial financial institutions due to strict lending conditions in an uneven economic recovery.
The government is accelerating the use of additional mechanisms through state-owned specialised financial institutions.
The cabinet approved two financial measures on Tuesday: the "SME Revitalisation Loan" programme and the "Beyond SME Loan" programme through the Small and Medium Enterprise Development Bank of Thailand (SME D Bank).
The SME Revitalisation Loan programme, with a credit limit of 10 billion baht, is aimed at providing working capital to invest in, expand, or improve businesses for vulnerable SMEs with annual income of 2 million baht or less.
The loan maximum per business is 1.5 million baht, with a fixed interest rate of 3% per year for the first three years and principal repayment deferred for up to 12 months. Applications are accepted until Dec 30, 2025.
The Beyond SME Loan programme, with a credit limit of 10 billion baht, is meant to provide working capital for investment, expansion, business improvement, or the purchase of assets or machinery to enhance business capabilities for SMEs with annual income of at least 2 million baht.
The loan maximum per business is 15 million baht, with a fixed interest rate of 3% per year for the first three years and principal repayment deferred for up to 12 months. Applications are accepted until Dec 30, 2025.
According to Mr Paopoom, both programmes will help support SMEs in all sectors, including vulnerable enterprises, ensuring they can access financing and have adequate liquidity to operate their businesses immediately.
