No Danger Perceived from Budget Bill in Senate
Thailand's 2026 Budget Bill: Emphasis on Stimulus and Fiscal Discipline
Thailand's 3.78 trillion baht (approximately 116.5 billion USD) 2026 Budget Bill is set to prioritise economic stimulus, fiscal discipline, and strategic spending, according to Senator Alongkot Worakee, deputy chair of the Senate's Ad-Hoc Committee on the 2026 Budget Bill.
The budget, a deficit budget with a projected deficit of 860 billion baht and total revenue estimated at 2.92 trillion baht, aims to stimulate economic growth in the short term while gradually reducing the deficit-to-GDP ratio by fiscal 2029. Despite anticipated economic uncertainties and slower growth forecasts, the budget spending increases modestly by about 0.7% compared to 2025.
To maintain fiscal discipline, the government plans to reduce fixed spending by around 25.794 billion baht. A special budget scrutiny committee has cut 8.92 billion baht from the proposed budget, with the reallocated funds going towards the central fund for emergencies or contingencies, the Digital Government Development Agency, the Fiscal Policy Office, and the Department of Empowerment of Persons with Disabilities.
The budget also closely supports the implementation of government policies, the national strategy, and the national economic and social development plan. However, some specific funding requests, such as a 750 million baht appropriation for new provincial offices and building reconstruction, faced cuts due to insufficient documentation and public concern following previous construction failures.
Senator Alongkot has dismissed speculation that the Upper House might vote down the draft legislation, stating that the Senate's role is limited to offering observations rather than making amendments. The Labour Ministry was allocated 1 billion baht for contributions to the Social Security Fund, while emergency aid received a budget of 1 billion baht from the central budget.
The Finance Ministry will host the 2026 World Bank and IMF annual meetings, with a budget of 1.568 billion baht. The House of Representatives is scheduled to begin a special three-day session on Wednesday to deliberate on the second and third readings of the budget. Despite political challenges, the budget passed a narrow vote in the House of Representatives, securing government coalition support.
Opposition MPs are expected to use the debate to highlight political issues, including the recent Thai-Cambodian border clashes, with the military's budget. The largest cuts were made to the Interior Ministry, parliament, the Transport Ministry, the Public Health Ministry, and the Natural Resources and Environment Ministry.
Senator Alongkot reiterated that there is no reason for the Senate to block the bill, and the Senate is scheduled to review the Budget Bill on Aug 25-26. The ad-hoc committee, chaired by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, proposed cuts totalling 8.92 billion baht after the bill passed its first reading. Chief government whip Visuth Chainaroon is confident a quorum will be maintained, and deliberations concluded by Wednesday.
The Orange Line's state enterprises received a cut of 4.914 billion baht from the budget, but no new information about amendments or reallocation of funds was provided in this paragraph. The budget prioritises economic stimulus with deficit spending, fiscal discipline through spending cuts and reallocations, enhanced revenue mechanisms, support for key national strategies, and responsiveness to political and public scrutiny.
The policy-and-legislation related to Thailand's 2026 Budget Bill is under review in the Senate, with Senator Alongkot stating the Senate's role is limited to offering observations rather than making amendments.
The budget's politics have been highlighted by Opposition MPs who are using the debate to discuss political issues such as the recent Thai-Cambodian border clashes and the military's budget.
