Budget bill clears first reading

PUBLISHED : 3 Jul 2026 at 05:02

The House of Representatives on Thursday voted to advance the government's 3.788-trillion-baht national budget bill for the 2027 fiscal year, sending it to a 72-member special committee for scrutiny.

The bill passed its first reading with 288 votes in favour, 119 against and 86 abstentions after three days of debate.

The House also appointed the 72-member special committee to examine the bill before its second and third readings. The panel includes 18 cabinet ministers and MPs from coalition and opposition parties.

During the debate, the government defended its fiscal strategy while the opposition questioned its spending priorities and fiscal discipline.

In his closing statement, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the government remained committed to boosting Thailand's competitiveness, raising incomes and helping households cope with economic hardship despite limited fiscal room.

He defended the government's 400-billion-baht emergency borrowing decree, saying swift action was needed to prevent economic difficulties from escalating into a broader crisis affecting small businesses and employment.

Mr Ekniti said the borrowing would support struggling households and finance Thailand's green energy transition. He said the country's heavy reliance on imported oil and natural gas left it vulnerable to rising global energy prices.

Over the past two months, higher oil prices have contributed to a current account deficit exceeding 500 billion baht, making programmes such as "Thais Help Thais Plus" and investment in the energy transition essential, he said.

Rejecting criticism over fiscal discipline, Mr Ekniti said the government had acknowledged the country's fiscal challenges and adopted a medium-term framework to reduce the budget deficit from 4.4% of GDP last year to 3% by 2029. The target for the coming fiscal year is 3.9%, he added.

He also stressed the need to shift public spending towards investment.

Although direct investment spending in the budget remained limited, the government planned to supplement it with 270 billion baht in state enterprise investment and public-private partnership projects covering infrastructure, clean energy and water management, he said.

Mr Ekniti said the budget complied with all legal requirements and that suggestions raised during the debate would be forwarded to the special committee for detailed consideration.