Prime Minister Paetongtarn Shinawatra has outlined a strategic approach for preparing the fiscal 2026 budget based on the “Three No’s” principle.
The budget will prioritise “efficiency growth” through three strategies:
- no reduction in government investment budgets, including subsidies for economic support;
- no increase in operational or recurring expenses, focusing on enhancing efficiency without increasing expenditures; and
- no expansion of the workforce at government agencies.
She outlined the issues on Wednesday during a meeting with government agencies, state enterprises and public organisations to draft the fiscal 2026 expenditure framework, which is set at 3.78 trillion baht.
She urged all agencies to explore ways to reduce regular expenditures, noting that annual increases in such expenses create accumulated costs over time.
Ms Paetongtarn also addressed challenges facing Thailand, both domestic and international, such as environmental issues and climate change, while rising expenses outpace Thai incomes, leading to higher household debt. The business sector faces liquidity issues.
In response, she said the government has implemented debt relief measures through projects like “You Fight, We Help” and soft loans for SMEs, as well as a 10,000-baht cash handout for Thai citizens.
In the economically vital tourism industry, Ms Paetongtarn said foreign arrivals this year are expected to match the 2019 record of nearly 40 million, which would be an increase of about 14% from an estimated 35 million in 2024.
In the first 12 days of the new year, 1.3 million foreign tourists visited Thailand, generating 66 billion baht in revenue, according to the Ministry of Tourism and Sports Ministry.
The tourism sector is projected to contribute around 3.3 trillion baht to the economy this year, said Ms Paetongtarn.
She also acknowledged the heavy burden of energy costs on Thais, saying that the government plans to restructure electricity pricing.
To attract foreign investment, the premier stressed the need to prepare the workforce for modern industries. Ms Paetongtarn called for a review of investment-related rules and regulations, many of which are 20-30 years old, to better align with global changes. Relevant agencies have been instructed to revise these rules to improve ease of doing business.
She highlighted the government’s medium-term fiscal framework for 2026-29, approved by the cabinet late last year, with the following directives:
- The Ministry of Finance must enhance revenue collection efficiency compared with countries with similar-sized economies;
- Agencies should spend efficiently and request only necessary funds;
- State agencies with accumulated income must prioritise these funds for investments or seek alternative financing sources, such as loans or public-private partnerships, to reduce the government’s fiscal burden;
- Government agencies must expedite the disbursement of investment budgets.
Ms Paetongtarn plans to participate in the World Economic Forum in Davos, Switzerland next week. The forum includes a platform for new leaders to introduce themselves and present Thailand’s readiness to investors.