Bangkok: Ekniti is preparing to push through the 2027 budget, focusing on maintaining fiscal discipline and avoiding extreme populism to restore confidence and boost the Thai stock market. Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapha, stated that after the government prepared the 2027 budget framework of 3.78 trillion baht, with a deficit of 788 billion baht and a target net revenue of 3 trillion baht, during the dissolution of parliament, government agencies were asked to submit budget plans and detailed investment projects to be ready for the post-election period and to facilitate procurement quickly. If the government under Prime Minister Anutin Charnvirakul and coalition parties is formed by April 2026, the disbursement of the 2027 budget might be delayed by only about one month, or possibly not delayed at all if disbursement is accelerated. If the government is formed in May 2026, the delay is expected to be around 1-2 months.

According to Thai News Agency, it is acknowledged that the new government, after presenting its policy statement to parliament, may adjust the 2027 budget plan to align with the policies of the multi-party coalition, but it must still remain within the framework of the original fiscal plan. For the 2027 investment budget of approximately 770 billion baht, the focus will be on utilizing more off-budget funding sources to reduce the burden of borrowing, through the Thailand Future Fund (TFF) and public-private partnership (PPP) projects. Therefore, the government must promote greater private sector investment to ensure that it can implement projects without affecting the normal budget framework.

Mr. Ekniti further stated that the government aims to maintain fiscal discipline and the country's credibility through the public debt ceiling and fiscal sustainability framework. This is to keep the debt ceiling below 70% of GDP to build national credibility. At this level, the government gains confidence from foreign institutions and investors, as the debt ceiling places significant importance on this policy. When the Anutin government announced it would not pursue extreme populist policies, it instilled confidence in foreign investors after the election, leading to a continued inflow of foreign capital into Thailand. This has a positive impact on confidence and the Thai stock market index.

The government will not unnecessarily raise the public debt ceiling because of the risk of a downgrade in the country's credit rating. This is because, in recent months, foreign investors have shown increased confidence in the government's economic policies, resulting in continuous capital inflows, both foreign direct investment (FDI) and into the stock market. Furthermore, the final cabinet meeting of the Anutin government approved a fiscal plan prohibiting the use of funds under Section 28 of the State Bank Act for "cash handouts," emphasizing cost-effectiveness and creating new fiscal "room" for urgent and necessary tasks.

Mr. Ekniti further stated that regarding Indonesia's economic problems, which led to the implementation of tax cuts and populist policies to stimulate the economy, resulting in a stock market fall and capital outflows to Thailand, this inflow into the Thai stock market is partly due to confidence and the government's announced policies emphasizing fiscal discipline. He acknowledged political pressure and attempts to expand the budget framework, but stressed the need to stand firm to prevent risks to the country's credit rating.