FPO’s Fiscal Transformation toward Sustainability: A key milestone reaffirming Thailand’s capabilities ahead of hosting AM2026 on the global stage

FPO’s Fiscal Transformation toward Sustainability: A key milestone reaffirming Thailand’s capabilities ahead of hosting AM2026 on the global stage

The Fiscal Policy Office (FPO) organized the academic seminar “Fiscal Transformation: Steering Thailand’s Public Finance toward Sustainability.” The objectives were to present policy ideas from the FPO’s new generation of civil servants and to listen to and exchange views with distinguished experts, academics, public agencies, and private-sector stakeholders—over 400 participants in total—on fiscal reform pathways to address Thailand’s structural economic and social challenges. The outcomes aim to inform appropriate and sustainable fiscal policy recommendations, aligning with Thailand’s commitment to preparing for its role as host of the IMF–World Bank Group Annual Meetings (AM2026) in 2026.

Decoding fiscal risks: the Map, Compass, and Gauge for sustainability

In the morning session, FPO officials presented academic work under the theme “Fiscal Transformation: Mastering Risks to Secure the Future—Decoding Risks for Lessons of Success,” analyzing “fiscal risks” in three dimensions as follows:

Decoding fiscal risks across these three interrelated dimensions provides a systematic framework for fiscal rebalancing. It yields a “Map” that helps identify obstacles and fiscal risk factors, a “Compass” that pinpoints to risk positions and sets the direction for appropriate future fiscal adjustments, and a “Gauge” that captures timing and accurately indicates the state of public finance—sending signals for the government to design suitable fiscal policies under different circumstances.

Elevating fiscal policy toward sustainable hope: a pivotal role on the road to hosting AM2026

The afternoon featured a panel discussion on “Fiscal Transformation: Shaping Policies for Sustainable Change.” Speakers included Dr. Pornchai Thiravech, Director-General of the Fiscal Policy Office; Mr. Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council; Dr. Phongsathorn Phokpermdee, Deputy Permanent Secretary of the Ministry of Public Health; and Mr. Smith Panomyong, Deputy Chief Executive Officer of Gulf Energy Development Public Company Limited. The panel concurred that Thailand faces structural economic and social challenges affecting fiscal capacity—such as growth below peer emerging markets that are less dependent on resources and energy commodities, rising public debt, constrained fiscal space, declining government revenues alongside increasing expenditures, and additional pressures from digital transformation and climate change. This calls for urgent strengthening of the fiscal framework, particularly by improving revenue performance in tandem with maximizing the efficiency of public spending to ensure long-term fiscal and economic sustainability.

Policy directions highlighted by the FPO include appropriately adjusting the VAT rate, broadening the personal income tax base, and modernizing new tax instruments to meet international standards, together with enhancing the efficiency of state asset utilization—emphasizing structural solutions. In alignment, the NESDC proposed four fiscal-reform pillars: restructuring revenues, improving spending efficiency, ensuring sustainable public-debt management, and reforming the role of the state while promoting public-private partnerships (PPP).

From the public-health perspective, four threats to Thailand’s health-finance sustainability were underscored: population aging, low birth rates, the health burden from non-communicable diseases (NCDs), and inequality in access to services—all of which affect the nation’s competitiveness. Proposed measures include standardizing health funds across population groups, creating incentives for primary-care services, accelerating the development of a Health Data Hub, and applying artificial intelligence (AI).

From the private sector, the Deputy CEO of Gulf Energy Development PCL noted that current tax collection affects business and existing tax tools no longer fit today’s realities. Recommendations include improving tax-collection efficiency, bringing informal workers into the tax system, reviewing tax deductions, identifying new industries to expand the tax base, and proactively managing state assets to boost revenue.

Thailand is ready to host AM2026, reinforcing confidence on the world stage

The seminar’s deliberations on sustainable fiscal reform reflect the Ministry of Finance’s perspective, which aligns with the agenda of the IMF–World Bank Group Annual Meetings (AM2026) that Thailand will host. This will be an opportunity for Thailand to present its vision and role in driving solutions to global economic and financial challenges, advancing toward stable and sustainable development under the banner of “Thailand’s New Horizon: Empowering People, Building Resilience.”