Bangkok: The Ministry of Finance is accelerating the preparation of fiscal plans to boost foreign confidence. Ekniti is expediting the development of a fiscal plan following a recent downgrade in Thailand’s outlook from stable to negative. The plan aims to reduce the fiscal balance to 3% of GDP by 2029, thereby enhancing foreign confidence.

According to Thai News Agency, Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapas, disclosed that the Fiscal and Monetary Policy Committee (MPC) has devised a fiscal plan in response to the downgrade by credit rating agencies. The government is prioritizing fiscal discipline under the Quick Big Win policy, “5 Pillars, 1 Foundation,” with the foundation focusing on maintaining the country’s fiscal stability.

The government intends the Medium-Term Fiscal Plan (MTFF) to demonstrate a credible commitment to fiscal discipline through three main approaches. The first approach is establishing clear and concrete financial management guidelines for income, expenditure, and debt. Secondly, the plan involves improving and enhancing fiscal regulations, including transparency on fiscal costs and lost revenue from tax benefits, to efficiently enforce fiscal discipline. Lastly, the government aims to establish guidelines for implementing quasi-fiscal measures in line with Section 28 of the Fiscal Discipline Act to improve clarity in managing fiscal burdens.

“All of these approaches share the goal of building confidence among credit rating agencies and the public that Thailand can reduce its fiscal deficit to 3% of GDP by 2029, while also supporting sustainable economic growth and playing a key role in laying the foundation for the country’s long-term economic growth,” the Finance Minister stated.