Allocated Funds Concentrated: Pheu Thai Secures 157 Billion Baht Stimulus Budget for FY26
Thailand's Parliament is set to debate the Fiscal Year 2026 Budget Bill from May 28 to 30, 2025. The proposed budget totals 3.78 trillion baht.
Despite earlier speculation that the Bhumjaithai Party might vote against the bill as a strategic move to challenge the government and potentially replace the prime minister, the party's leadership ambitions fall short, given the opposing forces in Parliament. The government coalition, led by the Pheu Thai Party, appears aligned, expectantly leading to the bill passing the first reading without significant resistance.
Following the first reading, a 72-member ad hoc committee will be appointed to scrutinize the bill, with Deputy Prime Minister and Finance Minister Pichai Chunhavajira presiding.
Key allocations within the budget include:- Central Fund: 632.97 billion baht (down 209 billion from FY2025)- Ministry of Finance: 397.86 billion baht (up 8.2 billion)- Ministry of Education: 355.11 billion baht (up 14.3 billion)- Ministry of Interior: 301.27 billion baht (up 6.85 billion)- Ministry of Defence: 204.43 billion baht (up 4.7 billion)- Ministry of Transport: 200.76 billion baht (up 7.4 billion)- Ministry of Public Health: 177.64 billion baht (up 5.67 billion)- Ministry of Higher Education, Science, Research and Innovation: 140.30 billion baht (up 8.05 billion)- Ministry of Agriculture and Cooperatives: 130.11 billion baht (up 7.48 billion)- Ministry of Labour: 68.07 billion baht (up 21.5 million)
The Central Fund, under the direct control of the Prime Minister, has drawn attention, with an allocation of 632.97 billion baht for FY2026, accounting for 16.74% of the total budget and representing a reduction from the previous year.
The Central Fund is allocated as follows:- Budget for government agencies: 1.41 trillion baht (37.25%)- Integrated expenditure: 98.77 billion baht (2.61%)- Personnel expenditure: 820.82 billion baht (21.71%)- Revolving fund: 274.58 billion baht (7.26%)- Public debt servicing: 421.86 billion baht (11.16%)- Treasury reserves: 123.54 billion baht (3.27%)
Classified by strategic objectives, the budget is directed towards:- National security: 415.33 billion baht- Competitiveness enhancement: 394.61 billion baht- Human capital development: 605.93 billion baht- Social equity and inclusion: 942.71 billion baht- Environmentally sustainable growth: 147.22 billion baht- Public sector reform and governance: 605.44 billion baht
Further discussions within the government are ongoing to potentially increase the Central Fund by an additional 20-30 billion baht, primarily to prepare for potential economic impacts from the so-called "Trump Tariff" scenario. However, the extent to which "Team Thailand" will have leverage in negotiating favorable terms in the evolving global trade landscape remains unclear.
In a separate development, the government has reallocated 157 billion baht from the central fund under the Fiscal Year 2025 Budget Act. The funds, previously earmarked for the digital wallet handout scheme, have been redirected to a new economic stimulus package aimed at strengthening Thailand's economic structure.
This stimulus package, focused on Central Fund allocations, is expected to support measures aimed at mitigating export-related challenges, boost productivity, and particularly address agriculture-related initiatives. Proposed initiatives include promoting technology adoption among farmers and SMEs and optimizing agricultural land use to suit market demand and climate realities.
Overall, the handling of the FY2026 budget and the stimulus allocation will be crucial in shaping not only Prime Minister Paetongtarn's administration's performance but also the political capital of the Pheu Thai Party and its coalition partners heading toward the next election cycle.
Tags: Budget, Fiscal Year 2026, Pheu Thai, Stimulus Package, Government Coalition, Finance Ministry, Central Fund, Ministries, Budget Allocation, Strategic Spending Objectives, Economic Stimulus, Government Spending
- The Fiscal Year 2026 Budget Bill, totaling 3.78 trillion baht, is set to be debated in Thailand's Parliament from May 28 to 30, 2025, with the government coalition, led by the Pheu Thai Party, appearing aligned, potentially leading to the bill passing the first reading.
- The proposed budget includes a decrease in the allocation for the Central Fund by 209 billion baht compared to the previous year, with an allocation of 632.97 billion baht for FY2026.
- The Central Fund, under the direct control of the Prime Minister, is allocated for various expenditures, such as budget for government agencies, integrated expenditure, personnel expenditure, revolving fund, public debt servicing, and treasury reserves.
- Classified by strategic objectives, the budget is directed towards enhancing national security, competitiveness, human capital development, social equity and inclusion, environmentally sustainable growth, and public sector reform and governance.
- Further discussions within the government are ongoing to potentially increase the Central Fund by an additional 20-30 billion baht, primarily to prepare for potential economic impacts from the "Trump Tariff" scenario.
- In a separate development, the government has reallocated 157 billion baht from the central fund under the Fiscal Year 2025 Budget Act. These funds have been redirected to a new economic stimulus package aimed at strengthening Thailand's economic structure.
- The stimulus package, focused on Central Fund allocations, is expected to support measures aimed at mitigating export-related challenges, boost productivity, and particularly address agriculture-related initiatives.
- Proposed initiatives include promoting technology adoption among farmers and SMEs and optimizing agricultural land use to suit market demand and climate realities.
- The handling of the FY2026 budget and the stimulus allocation will be crucial in shaping not only Prime Minister Paetongtarn's administration's performance but also the political capital of the Pheu Thai Party and its coalition partners heading toward the next election cycle.
- The proposed budget allocations and the stimulus package are interconnected with various sectors, including politics, finance, business, economy, infrastructure, education, health, culture, sport, technology, environment, and general news.
