Thailand to keep budget deficit not over 3%of GDP for FY24

Thailand’s government is planning to keep its budget deficit to no more than 3per cent of gross domestic product in the 2024 fiscal year, the finance minister said on Tuesday, aiming for a deficit of 593 billion baht ($17.13 billion).

Arkhom Termpittayapaisith also said the inflation target range of 1per cent to 3per cent was appropriate and monetary policy would ensure continued recovery of the economy. The inflation target will help maintain price stability and keep medium-term inflation expectations anchored, he told a news conference.

Headline inflation was 5.55per cent in November, far above the Bank of Thailand’s target range, but Arkhom said it would gradually fall back to within the target in 2023.

The country’s public debt was expected at 61.35per cent of GDP at the end of the 2024 fiscal year starting Oct. 1, he said.

The central bank recently it would continue to gradually raise its key interest rate for a while until the economy grew at its full potential and inflation returned to target.