Fiscal 2026 budget sees largest allotments headed for the Central fund and Finance Ministry.
Thailand's fiscal year 2026 budget, totalling 3.78 trillion baht, shows a marginal increase of 0.7% over the previous year's budget. This budget reflects a cautious fiscal approach with a projected deficit of 860 billion baht and revenue of 2.92 trillion baht.
Breakdown and Major Changes for Ministries in the 2026 Budget
The total budget for 2026 is nearly flat compared to the previous year, amounting to 3.78 trillion baht, compared to approximately 3.75 trillion baht in 2025. The overall spending relative to GDP will decrease from 19.5% in 2025 to 18.9% in 2026, demonstrating tighter fiscal discipline.
A parliamentary committee has made cuts amounting to 8.92 billion baht across ministries to better align spending with priorities.
Notable Ministry Budget Adjustments
| Ministry/Agency | 2026 Budget (approx.) | Budget Change from 2025 | Notes | |-----------------|----------------------|-------------------------|-------| | Ministry of Education | 355 billion baht | +14.33 billion baht | Significant increase focusing on basic education and One-District-One-School scheme; concerns raised about budget centralization | | Ministry of Defence | Reduced by 189 million baht | Moderate cut | Cuts mainly in construction and administration; core defense funding maintained with minor reductions in specific branches (Navy, Air Force, Armed Forces HQ) | | Royal Thai Navy | 21 billion baht | Cut by 47 million baht | Focused on cutting construction projects | | Royal Thai Air Force | 23 billion baht | Cut by 23 million baht | Construction and capability development projects trimmed | | Royal Thai Armed Forces HQ | 7.6 billion baht | Cut by 42 million baht | Similar targeted cuts in capital expenditure | | Other ministries with cuts | Unspecified | Part of 8.92 billion baht total cut | Budget cuts were reallocated to agencies with urgent needs such as emergency funds, digital government, fiscal policy, and disability empowerment | | Local administrative organizations | Additional allocations | Funded by cuts to Interior and Public Health ministries | Examples include Koh Kloi Municipality and Prachuap Khiri Khan Provincial Admin Org |
Budget Priorities and Reallocations
The reallocation of funds focuses on strategic national priorities, economic realities, and fiscal discipline to avoid increasing public debt. Investment spending has decreased by 7.3% to 864 billion baht, reflecting a cautious growth stance. Emergency and contingency funding, digital transformation, and social empowerment programs have received increased funding after reallocation from less urgent areas.
Context
Central government expenditure in Thailand accounted for nearly 27% of GDP in 2025, indicating government spending is still a significant share of the economy. The 2026 budget aims to slightly reduce this ratio. The government's fiscal approach for 2026 emphasizes sustainability, matching spending with projected revenues, and limiting new public debt to respond to a potentially slowing economy.
This breakdown shows that while total state spending remains largely stable from 2025 to 2026, there is a strategic shift in budget allocations, with education receiving a notable increase, defence facing modest cuts mainly in capital projects, and funds being redirected to priority social and emergency programs. The fiscal 2026 budget will be a deficit budget, and the budget, as outlined in the bill, is an increase of 27.9 billion baht from the fiscal 2025 budget.
- The Ministry of Education will receive a significant increase in the 2026 budget, with an allocation of approximately 355 billion baht, focusing on basic education and the One-District-One-School scheme, despite concerns about budget centralization.
- The Ministry of Defence, despite facing a moderate cut of 189 million baht in total, has maintained its core defense funding with minor reductions in specific branches like the Navy, Air Force, and Armed Forces HQ, with most cuts occurring in construction and administration.
- The Royal Thai Navy, Royal Thai Air Force, and Royal Thai Armed Forces HQ have all experienced cuts in their budgets for 2026, with a focus on limiting construction projects and capability development.
- Other ministries have seen budget cuts amounting to unspecified amounts, with these cuts being reallocated to agencies with urgent needs such as emergency funds, digital government, fiscal policy, and disability empowerment.
- Local administrative organizations, such as Koh Kloi Municipality and Prachuap Khiri Khan Provincial Admin Org, have received additional allocations, funded by cuts to the Interior and Public Health ministries.
