Thailand: Budget for fiscal 2022 wins cabinet approval

  • The cabinet on 16 Mar 21 approved a fiscal 2022 budget of THB3.10tr, with a deficit of THB700bn, which is THB91bn or 15% higher than fiscal 2021.
  • Sommai Lakananuruk, deputy secretary-general of the Budget Bureau, said the fiscal 2022 budget, starting from 1 Oct 21, would be THB186bn or 5.66% lower than the THB3.28tr approved in the fiscal 2021 blueprint.
  • The regular budget is set at THB2.36tr in fiscal 2022, down by THB177bn from the current fiscal year.
  • Revenue collection is estimated at THB2.4tr, down by 10.4% from the current fiscal year, which is THB2.77tr.
  • The fiscal 2022 budget is based on an economic growth forecast of 3.5% and an inflation rate of 0.7-1.7%.
  • The investment budget is maintained at 20.1% of the total budget, or THB624bn, down from THB649bn in fiscal 2021.
  • According to Mr Sommai, based on the country’s strategy, the government has allocated THB387bn to national security in fiscal 2022, with THB338bn set aside to strengthen the country’s competitiveness; THB548bn to human resource development; THB733bn to create opportunity and social balance; THB119bn to quality of life and environment, and THB559bn to government management.
  • The government is maintaining a budget for social welfare such as for the elderly, children and the disabled at THB1.5tr in fiscal 2022.
  • With an amount of investment budget lower than the budget deficit, Mr Sommai said the cabinet required state-owned enterprises to ramp up their investment and some infrastructure projects should receive investment in the form of the public-private partnership scheme.
  • State agencies with a lot of revenue should use their own revenue to promote foreign investment, he said.

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