Government finances in Thailand - statistics & facts
Despite a gradual recovery, Thailand’s economy underperformed growth projections in the beginning of 2024 with reduced exports and fewer tourists, in tandem with the global economic slowdown. Government finances are vital in maintaining, building, and improving Thai economic stability. In 2024, the value of Thailand’s national budget reached nearly 3.5 trillion Thai baht. The budget can be divided into three main segments: personnel, investment, and common funds. Personnel funds are compensation for government employees, which eventually go back into the economy through household expenditures. The government also funds initiatives that benefit the general population, such as subway expansion. Meanwhile, the common funds are a lump sum awaiting economic turbulence.
Each year, the government's budget is prepared and submitted to the National Assembly for approval. The Thai government's fiscal year begins in October and ends in September of the following year. Government expenditure is divided into several categories, including recurrent expenditure, development expenditure, and debt service. Recurrent expenditure covers the cost of running the government, while development expenditure is used for capital investment in infrastructure, education, health, and other sectors. Debt service refers to the repayment of loans and interest. Government spending as a proportion of the country’s GDP fluctuated in recent years. To stimulate the economy, the Thai government will roll out a 500 billion Thai baht digital wallet stimulus program toward the end of 2024, granting eligible citizens 10,000 Thai baht to spend in their registered districts.
Government revenue and expenditure
To finance the national budget, the Thai government relies on both domestic and external sources of revenue. Domestic government revenue comes mainly from taxes, such as personal income tax, value-added tax, and corporate income tax. External revenue includes grants and loans from international organizations and foreign governments. The government also manages several state-owned enterprises, including energy companies, the national lottery, banks, and transportation companies. These enterprises are expected to operate in a financially sustainable manner but also have a social mandate to provide affordable services to the public.Each year, the government's budget is prepared and submitted to the National Assembly for approval. The Thai government's fiscal year begins in October and ends in September of the following year. Government expenditure is divided into several categories, including recurrent expenditure, development expenditure, and debt service. Recurrent expenditure covers the cost of running the government, while development expenditure is used for capital investment in infrastructure, education, health, and other sectors. Debt service refers to the repayment of loans and interest. Government spending as a proportion of the country’s GDP fluctuated in recent years. To stimulate the economy, the Thai government will roll out a 500 billion Thai baht digital wallet stimulus program toward the end of 2024, granting eligible citizens 10,000 Thai baht to spend in their registered districts.
