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Provincial officials instructed to halt financial support

Provincial administrative bodies face directive to halt funding requests for a 51.5 billion baht drought management plan, allegedly due to political manipulation in budget assignments, according to the Budget Bureau.

Local government entities directed to discontinue financial support
Local government entities directed to discontinue financial support

Provincial officials instructed to halt financial support

The Budget Bureau has reportedly ordered the chairs of provincial administrative organizations (PAOs) to pull funding requests for a drought management plan worth over 51.5 billion baht, following accusations of political influence in budget allocations.

As per a source, this directive came after the National Anti-Corruption Commission (NACC) made the decision to probe allegations of irregularities concerning funds set aside for the 2025 fiscal year's water management project.

In a complaint filed with the NACC in late April, Deputy Prime Minister and Minister of Digital Economy and Society Prasert Jantararuangtong may have broken Section 144 of the constitution regarding the spending plan. According to the complaint, Prasert coordinated funding requests internally with each MP, averaging about 50 million baht per proposal. In total, 28,990 proposals were approved under the 2025 fiscal year drought management scheme.

Prasert reportedly presented these proposals to the cabinet for approval. Section 144 of the constitution prohibits House members from making adjustments to the budget bill that lead to the misuse of budgetary funds.

The investigation involves Pheu Thai constituency-MPs, Prime Minister's advisor Chakkrapong Saengmanee, and Budget Bureau director Anan Kaewkamnerd. On June 4, the NACC agreed to conduct an investigation, and if the allegations hold water, the case might proceed to the Constitutional Court for a ruling. Misuse of funds discovered can be subject to financial recovery within 20 years of disbursement.

Prasert refuted the allegations on June 10, stating that no party MPs were involved in budget allocations as claimed. In another development, People's Party (PP) MP Sirikanya Tansakun declared on Tuesday that the Finance Ministry's revenue collection would be under scrutiny during the meeting of the 2026 budget scrutiny committee. She stated that the performance of state enterprises would be discussed, particularly following King Power Duty Free's request to terminate concession contracts at five major airports, which could potentially affect national revenue.

The budget committee will also question the government's economic stimulus committee about the criteria for approval.

In the ensuing probe, Deputy Prime Minister Prasert Jantararuangtong stands accused of potentially breaching budgetary rules associated with the 2025 fiscal year's drought management plan. The scheme involved the approval of over 28,000 sub-projects aimed at overcoming drought and irregular rainfall[1][2][3]. Matters of political interference, corruption, and misuse of funds are at the heart of the investigation. As of now, the NACC is in the initial stages of fact-checking, with potential implications including the removal of Prime Minister Paetongtarn and other high-ranking officials if sufficient evidence is found[5].

  1. Amidst the ongoing investigation into allegations of irregularities in the 2025 fiscal year's drought management plan, the Finance Ministry's budget allocation could face intense scrutiny, given the potential involvement of political figures in the industry and politics.
  2. The ongoing probe into the drought management plan's funding, involving high-ranking officials such as Deputy Prime Minister Prasert Jantararuangtong, may shed light on the financial management of other significant projects in the general-news sector, potentially altering the landscape of both politics and finance in the future.

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