Thailand sees budget deficit for next two fiscal years

[BANGKOK] Thailand is likely to face budget deficits in next two fiscal years as the government spends in areas such as public health and education, Finance Minister Sommai Phasee said on Tuesday.

The budget deficit for 2015/16 and 2016/17 is estimated at about 350 billion baht (US$10.66 billion), equivalent to 15 percent of the government's revenue collection, Mr Sommai told reporters.

"My view is that we need to increase expenditure in social development such as public health ... We do not expect to balance the budget over the next two fiscal years," he said.

The deficit estimate is larger than the 2014/15 budget deficit of 250 billion baht which is equivalent to about 2 per cent of gross domestic product.

REUTERS