Oil shock pushes Thailand to rework spending to contain deficit

Thailand is adjusting its state spending to mitigate the effects of an oil shock while maintaining its fiscal deficit target of 788 billion baht for 2027. The government plans to achieve this through spending cuts and reallocations from its 3.79 trillion baht budget, aiming to free up 95 to 125 billion baht. The measures are in response to rising energy costs and economic pressures due to the Middle East conflict. The government will prioritize projects that reduce long-term fiscal burdens, such as installing solar panels on government buildings. Moody's has upgraded Thailand's outlook to stable.