Thailand to keep budget gap to no more than 3% of GDP in 2024 – finance minister

BANGKOK – Thailand’s government is planning to keep its budget deficit to no more than 3 percent 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 1 percent to 3 percent 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 5.55 percent 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 61.35 percent of GDP at the end of the 2023 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.

It has raised the benchmark rate by a total 75 basis points since August to 1.25 percent, and economists expected a further rate hike next month.

($1 = 34.62 baht)