House convenes for budget reduction discussions
Thailand's 3.78-trillion-baht budget for 2026 sees a reduction of approximately 8.92 billion baht from various ministries, with the funds being reallocated to priority projects and agencies.
The budget committee, chaired by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, has completed its vetting of the bill. Notably, the Interior Ministry will see a reduction of 2.148 billion baht, while parliamentary agencies will see a reduction of 880 million baht.
The deliberations, set to take place during a special parliamentary session called by House Speaker Wan Muhamad Noor Matha from Wednesday to Friday, aim to proceed smoothly, allowing the government to drive forward its policies to address the people's problems. Danuporn Punnakanta, Pheu Thai Party-list MP and party spokesman, stated that the second and third readings will be crucial in setting the economic direction for the coming year.
Reductions and Reallocations
The Ministry of Defence saw a reduction of 189 million baht, with the Office of the Permanent Secretary for Defence's land and construction budgets taking a hit of 40 million baht. The Royal Thai Navy's budget of 21 billion baht was cut by 47 million baht, while the Royal Thai Air Force's budget of 23 billion baht was cut by 23 million baht. The Royal Thai Armed Forces Headquarters budget of 7.6 billion baht was reduced by 42 million baht.
Cuts mainly targeted construction of official residences, administrative buildings, and military capability development projects. The funds saved from these reductions have been reallocated to agencies such as the central fund for emergency or contingency reserves, the Digital Government Development Agency, the Fiscal Policy Office, the Department of Empowerment of Persons with Disabilities, local administrative organizations, including specific municipalities and provincial administrative organizations.
Additional Allocations
The Finance Ministry received an additional allocation of 1.5 billion baht to host the 2026 Annual Meetings of the World Bank and IMF. The Public Health Ministry will see a reduction of 693 million baht, but it will also receive an additional allocation of 1 billion baht. The Labour Ministry received an additional allocation of 1 billion baht as well.
The central budget received an additional allocation of 1 billion baht for emergency and urgent state operations relating to security, public order, and disaster response. The Orange Line metro project (Bang Khun Non-Thailand Cultural Centre) received additional allocations of 4.9 billion baht for land and civil works.
The budget also includes a projected deficit of 860 billion baht, with revenue estimates at 2.92 trillion baht. This budget is designed under the principle of not incurring new public debt if revenues fall short, aiming to balance fiscal responsibility with strategic spending priorities.
The overall budget reflects a very modest increase of about 0.7% over the previous fiscal year, and investment spending within this budget is reduced by 7.3% compared to the prior year. The Natural Resources and Environment Ministry will see a reduction of 459 million baht, while the Transport Ministry will see a reduction of 795 million baht.
In conclusion, the roughly 8.92 billion baht cut from various ministries has been reallocated to specific agencies and projects deemed higher priority while maintaining a tight fiscal discipline consistent with economic expectations for 2026.
In the process of budget deliberations, the Ministry of Interior will see a reduction of 2.148 billion baht, with parliamentary agencies experiencing a decrease of 880 million baht. The funds saved from these reductions have been reallocated to agencies such as the central fund for emergency or contingency reserves.
The budget for theMinistry of Defence, Royal Thai Navy, Royal Thai Air Force, and the Royal Thai Armed Forces Headquarters have seen cuts targeting construction of official residences, administrative buildings, and military capability development projects, with the saved funds being reallocated to other agencies.
