Reduction of £8.9 billion in the government's budget plan announced
Thailand's 2026 Fiscal Budget Undergoes Revision for Efficiency and Alignment with National Priorities
The 2026 fiscal budget bill in Thailand, totalling 3.78 trillion baht, has undergone a revision of 8.92 billion baht by the special budget scrutiny committee. The committee, chaired by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, made cuts across all ministries to control spending after the bill’s first reading.
The largest reductions were in the Interior Ministry (2.148 billion baht), Parliament (880 million baht), Transport Ministry (795 million baht), Public Health Ministry (693 million baht), and Natural Resources and Environment Ministry (459 million baht). However, these cuts were not simply taken away but largely reallocated to high-priority projects.
The state enterprises for land and construction of the Orange Line mass transit project received 4.914 billion baht, the Finance Ministry to host the 2026 World Bank and IMF annual meetings was allocated 1.568 billion baht, 1 billion baht was set aside for emergency aid, and 1 billion baht was contributed to the Social Security Fund by the Labour Ministry.
This reallocation approach suggests the cuts aimed to streamline and prioritize spending rather than slash the budget haphazardly. The changes reflect the evolving economic landscape and are guided by the need for fiscal discipline and good governance.
Weera Theeraphatranon, a member of the budget committee, expressed concern about the projected deficit of 860 billion baht in the 2026 fiscal budget. Mr. Weera questions the assumptions underlying the economic growth projections of 1.3% to 3.3% for the next fiscal year, suggesting that the actual economic growth may slow more than previously anticipated.
Sirikanya Tansakun, a list-MP from the People's Party, supports a more cautious fiscal stance due to the fragile state of the economy. She suggests that in times of economic crisis and border tension, it is necessary to "save our ammunition" for when it is truly needed.
Ms. Tansakun proposes budget cuts during these challenging times, while Mr. Weera warns that drawing on reserve funds may create a recurring financial strain. The funds have been reallocated to the central fund for emergency or contingency reserves, the Digital Government Development Agency, the Fiscal Policy Office, and the Department of Empowerment of Persons with Disabilities.
The government's strategic plans, including the national strategy, national economic and social development plan, and other frameworks, were taken into account during the revision process. The House of Representatives is conducting the second and third readings of the 2026 fiscal budget bill. The committee's revisions are intended to align government spending with national priorities, strategic plans, and current economic realities.
The revision of Thailand's 2026 fiscal budget not only involves cuts across various ministries but also the reallocation of funds to high-priority projects such as state enterprises for land and construction of the Orange Line mass transit project, emergency aid, and the Social Security Fund. This reallocation approach is aimed at streamlining and prioritizing spending rather than slashing the budget haphazardly.
The proposed budget cuts and the reallocation of funds are guided by the need for fiscal discipline and good governance, reflecting the evolving economic landscape. However, concerns about the projected deficit and the actual economic growth rate have been raised by members of the budget committee, emphasizing the importance of caution in budgeting during challenging times.
