Government fast-tracks FY2026 budget disbursement to shore up GDP above 2%

The preparation of the FY2027 annual budget has fallen behind the original schedule, which would have started the new fiscal year on October 1, 2026, due to the election. The Election Commission (EC) certified election results on February 25, 2026, initially for 396 MPs, leading to votes to select the Speaker of the House, the Prime Minister, and the formation of a new Cabinet.

The incoming Cabinet will review the fiscal framework and projects in the draft FY2027 Budget Bill. In the meantime, the government’s key economic engine is to accelerate disbursement across all budget categories—current spending, capital spending, stimulus funds, carry-over budgets, and state enterprise investment—to ensure public spending helps drive the economy towards a growth target of no less than 2%.

Patricia Mongkhonvanit, Director-General of the Comptroller General’s Department, said the department is closely monitoring and accelerating FY2026 budget disbursement with all ministries, in line with the policy of Ekniti Nitithanprapas, Deputy Prime Minister and Finance Minister, to push funds into the economy as targeted.

For Q1 FY2026 (October–December 2025), disbursement met the 20% target—an encouraging figure reflecting improved efficiency compared with the same period of the previous fiscal year, when disbursement stood at 13%, despite a higher target this year.

Comptroller General’s Department sets up special teams to monitor capital spending

Patricia said a key factor behind smoother disbursement early in the fiscal year was the “front-loading” measure—accelerating disbursement from day one of the fiscal year by focusing on short-term projects that are ready to proceed and can be completed within one year. Most of these are not large, complex projects, helping funds flow into the economy more quickly.

For Q2–Q4 of FY2026, the plan will shift to tracking large-scale investment projects (mega projects) whose payments are made by work milestones. A special team will be assigned to shadow each ministry to identify obstacles and speed up contract deliveries, to ensure full-year disbursement remains on target.

NESDC: Total budget awaiting disbursement stands at 2.45 trillion baht

Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDC), said public-sector and state enterprise budget disbursement is a key support factor for the economy in FY2026, with higher budgets prepared for both current and capital expenditure.

FY2026’s budget framework is set at 2.45 trillion baht, up 7.9% from the previous fiscal year, comprising 1.80 trillion baht in current expenditure (up 5.6%) and 649 billion baht in capital expenditure (up 14.8%).

Using the base-case disbursement assumptions for FY2026—overall 90.6%, comprising 98% for current spending and 70% for capital spending—total disbursement into the economy is projected at 2.22 trillion baht, up 6%. This includes 1.76 trillion baht in current spending (up 3.3%) and 454 billion baht in capital spending (up 18.2%).

Carry-over budgets for FY2026 total 209 billion baht, down 8% year on year, comprising 30.3 billion baht in current spending and 178 billion baht in capital spending—equating to growth of 4.2% and a decline of 9.8%, respectively.

FY2027 Q1 disbursement target set at 20.3%

For FY2027, the base-case scenario expects the budget process to be delayed by one quarter due to the government transition. As a result, Q1 FY2027 disbursement is projected at 20.3%, comprising 25.8% for current spending and 4.5% for capital spending.

Stimulus budget: 35.1 billion baht still in the pipeline

The economic stimulus budget under the FY2025 Budget Act sits within the central budget item for economic stimulus and strengthening the economy, under a framework of 187.7 billion baht.

Tracking of stimulus spending shows that out of 133.863 billion baht, allocations of 130.954 billion baht were made, comprising:

• Infrastructure: 82.847 billion baht
• Tourism: 9.492 billion baht
• Export impact mitigation and productivity enhancement: 11.0 billion baht
• Community economy and others: 9.126 billion baht

as well as:

• Competitiveness enhancement for targeted industry entrepreneurs: 10.0 billion baht
• Human capital investment to cushion risks to Thailand’s economy: 8.488 billion baht

As of February 10, 2026, disbursement under this central budget item had reached 95.831 billion baht.

Within the same framework, 35.123 billion baht remains. Of this, 24.044 billion baht has already been contractually committed, while 7.130 billion baht is in the procurement process. Disbursement progress by category includes:

• Infrastructure: 50.634 billion baht disbursed (61.12%)
• Tourism: 7.054 billion baht disbursed (74.32%)
• Export impact mitigation and productivity enhancement: 10.718 billion baht disbursed (97.43%)
• Community economy and others: 8.935 billion baht disbursed (97.91%)

Meanwhile, the competitiveness enhancement programme and the human capital investment programme have achieved 100% disbursement.

Danucha said disbursement of the central stimulus budget plays an important role in sustaining public investment momentum in the first half of FY2026. Accelerating the remaining 35.123 billion baht into the economy would support public investment in the first half of FY2026 and help create jobs and household income.

State enterprise investment seen as a further support

State enterprise capital spending is estimated to inject around 92 billion baht into the economy in Q4 FY2026, which would help support growth if the FY2027 state budget is further delayed. NESDC has formally asked state enterprises to accelerate investment.

Anan Kaewkamnerd, Director of the Budget Bureau, said that if a government can be formed by June in line with the budget calendar, the FY2027 Budget Act is expected to be promulgated in December 2026, in line with the initial projected timeline. However, the precise schedule depends on the new Cabinet’s decisions. The Budget Bureau said it would move as quickly as possible, and once the new government is in place it will submit a revised budget calendar to the Cabinet.

Prime Minister orders faster FY2027 budget preparation

The Prime Minister has instructed agencies to prepare the FY2027 budget as quickly as possible so spending can begin sooner, expressing confidence that the FY2027 process will be faster than after the previous election in 2023, when it took more than six months for the Budget Act to be promulgated.

After FY2025 ends in September, and while awaiting the promulgation of a new Budget Act, the government will need to use an interim budget arrangement. In principle, this means using the previous year’s Budget Act for the same plans and existing projects. A key limitation is that spending can only be disbursed for ongoing or existing projects; new projects requiring additional or newly approved budgets cannot begin. The Director of the Budget Bureau has authority to set spending criteria, subject to approvals under required procedures.

On measures to accelerate disbursement, the Budget Bureau director said further measures are under consideration to improve efficiency, with discussions planned with relevant agencies to develop additional acceleration measures.

He added that the Budget Bureau prioritises continuous acceleration of disbursement. While current spending remains broadly on track, additional measures may be introduced to speed up implementation further.

Reporters noted that the FY2027 budget preparation calendar—approved by the Cabinet after the dissolution of parliament—sets key steps starting from June 2026. The Prime Minister will issue budget policy guidelines, and budget-receiving agencies must submit detailed funding requests by June 12, 2026. The draft then enters parliamentary scrutiny, with the House expected to consider the first reading on September 2–4, 2026, and the second and third readings on November 18–20, 2026. The Senate is expected to review the bill in late November, before submission for royal assent on December 3, 2026. The FY2027 Budget Act is expected to take effect within December 2026.