Compared to other developing countries, recent budget deficit of Thailand was not so
desperate if moderate economic growth has been taken into account. Economic growth
increased at 5-6% per annum over 1987-2004 indicating that economic growth has turned out
to be normal since 2002 which is the last year that budget deficit was reeled at –1.4% (see
table 8). Nevertheless, one thing that we can tell is that relationship between budget deficit
and economic recovery is unclear. What we can conclude so for is that the recovering of Thai
economy might be attributable to external environment in other Asian countries. What must
be concerned is that the new government under the leadership of Taksin is continuously
applying non-budget deficits as the main strategy under neo populist policy. In 2004, nonbudget
deficit was 3,900 million bath and there is a tendency that this deficit will be broaden
under the neo populist policy3