Thailand’s government is intensifying efforts to revive its struggling economy with a proposed THB3.78 trillion ($115.5 billion) budget for fiscal 2026.
The budget comes as the country grapples with increasing pressure following a 36 percent tariff hike imposed by the United States on Thai exports. The move underscores Thailand’s economic vulnerabilities amid a weakening domestic outlook and highlights the urgency of finding new sources of revenue.
In response to the growing strain, Deputy Prime Minister Phumtham Wechayachai has strongly defended the Entertainment Complex bill as a necessary economic measure.
Scheduled for parliamentary debate in July, the bill has become a flashpoint between the government and opposition parties amid the challenging trade environment. Phumtham emphasized that the bill—which includes provisions for casino operations within integrated entertainment complexes—is intended to generate substantial revenue to help offset losses from the new US tariffs.
According to Reuters, Prime Minister Paetongtarn Shinawatra presented the draft budget to parliament on Wednesday, initiating a four-day debate ahead of a vote expected on Saturday. The proposed budget reflects a modest 0.7 percent increase from the previous fiscal year, with a projected deficit of THB860 billion ($26.3 billion), or 4.3 percent of GDP—slightly lower than the current year’s figure.
“The deficit budget policy is aimed at maintaining economic stability, including supporting recovery and promoting growth at an appropriate level,” the draft document states. GDP growth for 2025 and 2026 is forecast between 2.3 percent and 3.3 percent, while inflation is projected at 0.5 percent to 1.5 percent. The budget does not yet account for the potential impact of the US tariffs, which are expected to take effect after a moratorium expires in July.
Should the budget fail to pass, Prime Minister Paetongtarn could be forced to resign or dissolve the lower house and call for new elections. Despite these risks, the budget is widely expected to garner sufficient parliamentary support.
Thailand’s economy grew by 3.1 percent year-on-year in the first quarter of 2025. However, the state planning agency recently downgraded its full-year growth forecast to between 1.3 and 2.3 percent, citing ongoing uncertainties related to the US trade dispute.
