The cabinet has approved an investment budget of 1.6 trillion baht for state enterprises in fiscal 2026, which is expected to lift GDP growth by 0.3 percentage points.
According to Siripong Angkasakulkiat, spokesman for the Prime Minister’s Office, the cabinet passed the investment framework for state enterprises for fiscal 2026, with a total budget of 1.6 trillion baht.
A report by the National Economic and Social Development Council (NESDC) predicted this investment spending should help stimulate Thailand’s economic growth by 0.3 percentage points.
In August, the government planning unit raised its median estimate for Thai GDP growth this year to 2%, up from an earlier estimate of 1.8%, citing greater clarity on US President Donald Trump’s reciprocal tariff policy.
The NESDC attributed the clearer outlook on tariffs — with Thailand receiving a rate of 19%, close to the average in this region — as benefiting the country’s export sector. The export value in US dollars for the full year is expected to expand by 5.5%, higher than the 1.8% growth projected on May 19.
This export recovery is expected to spur manufacturing and private investment. Private investment this year is forecast to grow by 1%, up from a projected contraction of 0.7% and an improvement on last year’s 1.6% contraction.
In addition, Mr Siripong said the cabinet assigned the State Enterprise Policy Committee to direct all state enterprises to improve regulations that still hinder public services, shifting towards a customer-centric model that places individuals at the centre of service delivery.
“State enterprises that have burdensome or inconvenient public services must revise their regulations accordingly. Any issues that cause difficulties or inefficiencies in providing public services should be promptly improved,” he said.
The cabinet also approved the policy framework for fiscal 2027, with Prime Minister Anutin Charnvirakul scheduled to announce the policy direction on Dec 1.
“The prime minister said the timeline for the fiscal 2027 framework must be adjusted following the establishment of the new government, to ensure the process is completed in time for the 2027 fiscal year without delay,” said Mr Siripong.
“The Budget Bureau will take this directive into consideration.”