Thailand’s fiscal position is predicted to face a downturn in the medium term, according to analysts, as the government advances populist policies such as the digital wallet scheme. BMI, a division of Fitch Solutions, forecasts that the nation’s budget deficit will escalate from 2.9% in the current fiscal year to 3.6% in the following fiscal year.
This is due to the government’s announcement of various policies aimed at stimulating GDP growth, coupled with a fiscal budget of 3.48 trillion baht for next year, said BMI, the London-based research firm.
“The fiscal position of Thailand is anticipated to be strained in the medium term, as the Pheu Thai government is likely to execute expansionary populist spending to achieve its growth target of 5.0%.”
Several measures that could potentially harm Thailand’s fiscal position have already been…
