Preparing to safeguard the proposed 2026 financial legislation
Thailand's Government Prepares to Defend Fiscal Year 2026 Budget, Set at 3.78 Trillion Baht
Prime Minister Paetongtarn Shinawatra announced yesterday the government's readiness to defend the proposed budget for the 2026 fiscal year, starting in October of this year and ending in September 2027, during the first reading scheduled for tomorrow through Saturday.
The budget proposal totals 3.78 trillion baht, representing a nearly 30 billion baht increase compared to the current fiscal year. The Interior Minister and Bhumjaithai leader, Anutin Charnvirakul, has dismissed reports suggesting that his party may vote against the bill, stating that Bhumjaithai oversees four ministries and was involved in reviewing spending proposals amounting to one trillion baht.
During the press conference, Paetongtarn acknowledged the criticism from the main opposition People's Party concerning the coordination among various ministries' spending plans. She insisted, however, that the government has had regular discussions with coalition partners, and there is no need for additional talks specifically concerning the budget bill debate.
Remarkably, the central emergency fund is allocated the largest portion of the budget at 632.9 billion baht, followed by the Finance Ministry at 397.8 billion baht, the Education Ministry at 355.1 billion baht, the Interior Ministry at 301.2 billion baht, and the Defence Ministry at 204.4 billion baht.
According to a report prepared by the National Economic and Social Development Council before the new US tariff policy, Thailand's economy in 2026 is forecast to expand 2.3-3.3%, due to growth in domestic consumption, private investments, and tourism recovery. Inflation is projected to be 0.5-1.5%, and the current account balance is expected to have a surplus of 2.3% of GDP.
Meanwhile, the Senate subcommittee on finance has raised concerns about a possible shortfall in revenue. Chairman Chayanant Tiyatrakarnchai expressed the need for spending adjustments based on a 100-billion-baht revenue shortage estimate, which is based on information provided by representatives from the Revenue Department, the Excise Department, and the Customs Department on May 22.
On a separate note, Senators Chayanant and Sarayut Yimyuan called for transparency and accountability, and reforms to be implemented in public investment spending. The delay of the digital wallet scheme was commended by the senators as evidence of the government's willingness to make adjustments when necessary.
According to the Enrichment Data, the budget includes a 157-billion-baht stimulus package, aims to promote "green growth," and develop public sector management. The budget is projected to have a deficit of 860 billion baht, which will be covered by loans. The government is also considering measures like the Entertainment Complex bill to generate revenue and offset the impact of US tariffs.
- The announced budget for Thailand's Fiscal Year 2026, set at 3.78 trillion baht, includes a 157-billion-baht stimulus package, targeted at promoting "green growth" and developing public sector management.
- Amid concerns about a potential shortfall in revenue, the Senate subcommittee on finance has called for spending adjustments based on a 100-billion-baht revenue shortage estimate.
- In the realm of policy-and-legislation and politics, Senators Chayanant and Sarayut Yimyuan have advocated for transparency, accountability, and reforms in public investment spending, commending the delay of the digital wallet scheme as evidence of the government's willingness to make adjustments.
