Julapun defends 2026 budget bill, citing preparedness for global economic risks

Deputy Finance Minister Julapun Amornvivat on Wednesday defended the fiscal 2026 budget bill, dismissing the opposition's concerns that it lacks a contingency plan for global economic risks.

Budget prepared for economic uncertainties

During the second reading of the budget bill, Julapun insisted that the government had prepared the bill to drive the country’s economic growth, taking into account the needs of government agencies as well as the financial status and economic stability.

He reassured the House that the budget would provide sufficient allocations to cope with future economic uncertainties.

Addressing global risks and financial reserves

Julapun explained that the fiscal 2026 budget had been prepared with the challenges of an economic slowdown and US trade barriers in mind.
“The government fully understands these risks, but the Finance Ministry has mechanisms in place to manage revenue and cope with the risks,” Julapun said.

He highlighted that the Finance Ministry holds substantial fiscal reserves, including a 50-billion-baht emergency fund, alongside other legal mechanisms to address any potential economic crises.

“I affirm that the available funds and budget mechanisms will be sufficient to resolve economic issues and drive growth,” Julapun assured the House.

Ensuring future government spending

Regarding concerns about a shrinking GDP and its potential impact on government revenue, Julapun reassured lawmakers that the Finance Ministry could manage revenue collection to ensure government spending would not be affected in the future.

“While revenue collection may be somewhat impacted, we are confident in our ability to manage it without causing adverse effects,” Julapun said.

He added that despite anticipated revenue shrinkage, the government proposed high spending to maintain investor confidence and support long-term economic growth.

Plans for fiscal discipline and revenue growth

Julapun noted that, for fiscal 2026, the government plans to reduce fixed spending by up to 25.794 billion baht (1% of projected spending).

He also outlined plans to boost revenue, including improving the tax collection system to enhance efficiency and fairness, boosting state and private sector investment, managing government assets to generate income, and reducing government spending.

Deficit budget with a long-term goal of balance

Julapun acknowledged that the fiscal 2026 budget was proposed as a deficit budget to stimulate the economy. However, he assured that the government had a systematic plan to reduce the deficit-to-GDP ratio gradually until fiscal 2029:

• 2026: Deficit of 860 billion baht (4.3% of GDP)
• 2027: Deficit of 758.6 billion baht (3.6% of GDP)
• 2028: Deficit of 721.9 billion baht (3.3% of GDP)
• 2029: Deficit of 703.3 billion baht (3.1% of GDP)

“These figures show that the government is committed to continually reducing the budget deficit and balancing the budget in the long run,” Julapun said.