House approves 2027 budget bill in first reading after three-day debate

The House of Representatives voted overwhelmingly on July 1 to pass the 2027 budget expenditure bill in its first reading, or acceptance in principle, after three days of debate.

At 9pm, the House voted 288 in favour, 119 against, with 86 abstentions, out of 493 MPs present.

After the vote, the House proceeded to nominate members of a special committee to scrutinise the 2027 budget bill.

Before the vote, Ekniti Nitithanprapas, Deputy Prime Minister and Finance Minister, delivered a closing statement on the 2027 budget bill, declaring that the government intended to prepare a new form of budget that places emphasis on transparency and recognises real fiscal limitations.

Government admits fiscal problems, pledges realistic budgeting

Ekniti explained that, in the past, recurring expenditure had often not been fully budgeted for, or some spending items had been hidden. As a result, the government eventually had to draw on the treasury reserve, which he described as the country’s savings.

For the 2027 budget, however, the government has chosen to include recurring expenditure and previously overlapping welfare budgets in the main budget in line with actual conditions. He said this would make the country’s fiscal position more transparent and allow problems to be addressed at the right point.

As a result of this restructuring, the investment budget appears to have fallen by about 70 billion baht. In reality, Ekniti said, the figure reflects a correction of budget data to comply with fiscal discipline.

Plan to reduce deficit below 3%

On the budget deficit, Ekniti acknowledged that in 2026 the country had faced overlapping crises, causing the deficit to rise to 4.4% of gross domestic product, which created pressure from global credit-rating agencies.

In 2027, the government plans to reduce the deficit to 3.9% of GDP. It has also announced a medium-term fiscal sustainability plan, targeting a reduction in the deficit to below 3% by 2029.

Ekniti said this clear direction would help restore confidence and keep financing costs under control for both businesses and the public.

The government has also increased transparency by disclosing budget data in Excel format, allowing the House, media, academics and the public to analyse and scrutinise the use of taxpayers’ money more easily and quickly.

Off-budget funds to support the economy

The finance minister stressed that, although the budget is limited, the government is not halting investment. Instead, it will change the method of funding by using off-budget tools.

These include 270 billion baht in state-enterprise investment budgets, public-private partnerships, or PPPs, and the acceleration of regulatory reforms to attract real investment through the Board of Investment, or BOI, worth more than 900 billion baht.

The focus will be on infrastructure projects, smart grids, clean energy, data centres and semiconductors.

For short-term crises such as the cost of living and inflation, the government has introduced measures to assist vulnerable groups and small entrepreneurs through the “Thais Help Thais” project. The aim is to prevent economic problems from spreading into job losses.

The government has also introduced an artificial intelligence tool called “Nok Krasib” to help vendors keep accounts, analyse costs and improve their chances of obtaining loans from state financial institutions.

Twelve-year goal to make Thailand a high-income country

Ekniti said the main goal of managing the country under limited budget conditions is to ensure that public spending delivers the greatest benefit.

The government will prioritise vulnerable groups, newborn children, the elderly and small earners, while laying the foundations for digital skills to help bring Thai people into the new economy.

He concluded that the government has set a medium-term target of pushing Thailand’s economic growth back above 3% and raising national competitiveness into the world’s top 20 within four years.

The government will work with the private sector and global organisations such as the World Bank to help Thailand become a high-income country within the next 12 years.

Ekniti called on all parties to work together to turn the current crisis into an opportunity to restore the country’s economy.