BANGKOK () – Thailand is planning a small rise in spending of 3.78 trillion baht ($110.7 billion) for the 2026 fiscal year and a slightly lower deficit of 860 billion that year, the government said on Tuesday.

The budget plan is based on expected economic growth of between 2.3% and 3.3% and inflation of 0.7% to 1.7% in 2026, it said in a medium-term fiscal plan, which was approved by the cabinet on Tuesday. The 2026 fiscal year starts on Oct. 1, 2025.

The plan projects a public debt-to-GDP ratio of 67.3% at the end of the 2026 fiscal year, up from 65.6% at the end of the 2025 year.

The 2026 budget plan would increase spending by 0.7% from the 3.75 trillion baht planned for the 2025 fiscal year, when spending is set to rise from 2024, according to the statement.

The deficit would fall by 1% from the 870 billion baht planned for 2025.

“The fiscal target of the fiscal plan still requires a deficit budget to maintain economic stability and focus on reducing the deficit to an appropriate level in the medium term,” the government said.

It will meet to discuss the 2026 budget plan on Jan. 3, a Budget Bureau official told reporters.

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