Thai Chamber Urges 2570 Budget Focus On Long-Term Economic Restructuring
Thailand's Chamber of Commerce urges the government to use the 3.788 trillion baht 2570 budget for long-term economic restructuring rather than short-term spending, warning that recurring costs now consume 73.6% of the budget while investme
The Thai Chamber of Commerce has highlighted the government's fiscal constraints, noting high spending paired with low revenue collection. Chamber President Pimpjai Leeissaranugul stated that the 2570 budget must be understood within the context of state limitations, as Thailand must balance short-term economic management, maintain fiscal discipline, and address continuously rising recurring expenditures. The key issue is not whether to spend more or less, but how effectively spending can restructure the economy.
The 2570 budget figures reflect these constraints starkly. The total budget allocation sits at approximately 3.788 trillion baht, representing a mere 0.2% increase from the previous year. Net revenue is projected at 3 trillion baht, necessitating a deficit-covering loan of approximately 788 billion baht, or 3.8% of GDP.
Recurring expenditures have increased 5.0% and now account for 73.6% of total budget, while investment spending has decreased 8.4% to represent just 20.8% of total budget. These figures demonstrate that Thailand's fiscal space is contracting, requiring the government to establish clearer budget priorities—particularly as the Thai economy in 2570 is projected to grow only 1.7-2.7%, insufficient to address structural challenges including productivity, energy costs, labor skills, competitiveness, and industrial modernization.
The Chamber views the 2570 budget as a tool for long-term economic restructuring rather than addressing immediate, ad-hoc problems. Budget weight should focus on productivity-enhancing projects including logistics and digital infrastructure, modern labor skill development, small-medium enterprise technology and AI adoption, clean energy investment, innovation support, Thai product standards, and measures connecting Thai businesses to global supply chains.
The Chamber proposes five key fiscal measures:
1. Allocate budgets based on economic results. Investment spending should target projects measurably increasing productivity, reducing costs, creating jobs, boosting business revenue, or building new national capabilities—not scattered across unfocused initiatives.
2. Increase state revenue by expanding the economic base. Government should grow the economy, fairly broaden the tax base, use digital tools to reduce leakage, and promote high-value-added new industries—rather than hastily raising taxes that might further burden manufacturers.
3. Implement transparent monitoring and evaluation systems for all major projects with clear metrics spanning outputs, outcomes, and economic impacts. Public and private sector stakeholders should access progress data to ensure budgets deliver real benefits beyond mere disbursement.
4. Increase public and private sector participation. Good budgets reflect genuine local needs, particularly for infrastructure, labor, energy, and SME development projects. Direct beneficiary input ensures public funds reach high-impact projects.
5. Reduce recurring expenditures through civil service reform toward digital government. Cost reduction should eliminate redundancy across agencies rather than simply cutting budgets.
