House called in to debate budget cuts
The schedule came after a budget committee, chaired by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, completed its vetting of the bill ahead of the next fiscal year starting on Oct 1.
The 2026 budget of over 3.7 trillion baht is said to have been reduced by a total of 8.92 billion baht.
All ministries and state agencies will suffer, with the top five reductions seeing the Interior Ministry cut by 2.148 billion baht, parliamentary agencies by 880 million baht, the Transport Ministry 795 million baht, the Public Health Ministry 693 million baht and the Natural Resources and Environment Ministry by 459 million baht.
The saving has seen 8.69 billion baht assigned to cabinet-proposed agencies and 230 million baht to parliamentary bodies, courts, constitutional groups and the Office of the Attorney-General.
The vetting also led to some agencies receiving additional allocations, including state enterprises (+4.9 billion baht) for land and civil works under the Orange Line metro project (Bang Khun Non–Thailand Cultural Centre); and the Finance Ministry (+1.5 billion baht) to host the 2026 Annual Meetings of the World Bank and IMF.
Other to benefit were the central budget for emergency and urgent state operations relating to security, public order, and disaster response (+1 billion baht) and the Labour Ministry (+1 billion baht).
Danuporn Punnakanta, Pheu Thai Party-list MP and party spokesman, said the second and third readings will be crucial in setting the economic direction for the coming year.
"I believe the deliberations will proceed smoothly, allowing the government to drive forward its policies to address the people's problems," he said.
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Bangkok Post
2 days ago
- Bangkok Post
A difference of opinion
When the moment of truth came -- that Thailand had been slapped with a 19% tariff by the US, down from the originally threatened 36% -- several implications for the government were spelt out by experts, both positive and cautionary. The fact that the government successfully negotiated the tariff rate down to 19% allows it to claim a diplomatic and economic victory. It positions the government as competent in international negotiations and responsive to economic threats, especially after an extended period of vulnerability from the Trump administration's tariffs, according to supporters. Public and business confidence in the government, particularly among exporters and investors, may temporarily improve. The government can exploit this as protecting national economic interests in a fragile post-pandemic and post-border conflict environment, experts said. Government supporters insisted the outcome of the negotiations has enhanced the stature of noted technocrats like Finance Minister Pichai Chunhavajira or government adviser Dr Prommin Lertsuridej as effective economic stewards, and shored up the beleaguered government's image. It has, in turn, helped stabilise an increasingly fragile coalition government under heavy scrutiny for lacking strong economic leadership or a long-term plan. Also, the concessions made to the US -- elimination of import duties on more than 10,000 American products -- may trigger criticism from domestic industries that now face heightened foreign competition. This includes agriculture and small and medium-sized enterprises (SMEs) at risk of being undermined by cheaper US imports. Critics have framed the deal as capitulating to American pressure, portraying it as a win for Washington but a loss for Thailand's long-term competitiveness. The tariff issue also indicates a tilt towards the US at a time when Thailand must perform a careful diplomatic balancing act amid the Thailand-Cambodia border conflict, where regional alliances are under scrutiny. Pro-Beijing elements, or nationalist factions, are questioning the wisdom of relying too heavily on Western markets, according to observers. The tariff deal still requires parliamentary approval, which means the legislative process could revive political tensions if the opposition exploits the deal to question the government's transparency or economic strategy. At the same time, intra-coalition differences could emerge over how the tariff concessions align with broader industrial and agricultural policies. The experts agreed that while the lower US tariff is a strategic, diplomatic and economic relief, it is not without political cost. The government must play its cards right and manage the domestic industrial fallout, sell the deal politically, and prepare for parliamentary scrutiny -- all while navigating geopolitical sensitivities in a shifting regional order. Meanwhile, former finance minister Korn Chatikavanij has warned of long-term risks from the US tariff, urging the government to invest more in sharpening the country's competitive edge. Mr Korn has issued a sobering analysis of the 19% import tariff, which directly impacts Thai exporters. While acknowledging that Thailand avoided harsh penalties with the 36% tariff, he noted the compromise came at a high price and that urgent domestic reforms are needed to prevent the country falling further behind in a hostile global trade environment. In a post titled "What Will 19% Mean?", published on his Facebook page, Mr Korn expressed some relief that Thailand secured a tariff rate comparable to other Asean countries, despite the diplomatic challenges that led up to the outcome. "The 19% came at the cost of Thai people's blood and sweat," Mr Korn wrote. "There had been no indication that Trump saw value in our proposals -- until he seized the opportunity to play the hero in ending the [Thai-Cambodian] standoff. That's why some have called the outcome a 'Peace Dividend'." Notably, Mr Korn pointed out that the US did not distinguish between Thailand and Cambodia in assigning tariff rates, despite Cambodia initially facing a 49% rate. Both now face the same 19%, showing Washington's strategic rather than moral calculus. While Thailand managed to hold its ground diplomatically, Mr Korn stressed that international perceptions remain a concern and that there is more work to be done in communicating Thailand's position to the global community. The former finance minister warned that Thai exporters will inevitably suffer lower profit margins under the new tariff structure. The added costs, compounded by the potential drop in American consumer demand due to rising prices, could dampen Thailand's export performance. He also highlighted the indirect consequences of the US tariffs on global trade dynamics. With China facing growing difficulty rerouting its exports via transshipments to evade tariffs, Thailand may see a surge of cheap Chinese goods flooding into its domestic market, posing an additional hardship for local manufacturers. Mr Korn applauded Mr Pichai for outlining the correct policy direction -- preparing relief measures through low-interest credit packages for affected businesses and pushing for long-term competitiveness enhancements. He also hammered home the importance of transparency, urging the government to disclose the terms of its negotiations with the US under Section 178 of the Constitution, which requires parliamentary oversight of international agreements. "Trump is the clearest winner," Mr Korn concluded. "He has succeeded in extracting US$300–500 billion annually in tariffs from global trade partners. The message is clear: in this era, friendship is irrelevant -- only mutual interests matter." Mr Korn closed his analysis with a warning: Thailand must not rely on diplomatic luck or external protection. The only sustainable path forward is internal development, reform, and innovation. "If we don't adapt," he warned, "we'll only become more disadvantaged." Waiting in the wings? With tensions along the Thai-Cambodian border showing no sign of easing and the prospect of a general election looming, observers now see the possible rise of a new political force. They envisage a fresh conservative party capable of tackling political, economic and security problems while putting forward a prime ministerial candidate who can stand shoulder-to-shoulder with those from existing political parties. Such a candidate need not be a career politician, but must possess an unblemished record, free of any links to Cambodia's leadership. And with many in the conservative camp increasingly dissatisfied with existing conservative parties, speculation is rife that any new party aligning itself with the armed forces could have an advantage at the polls. Stithorn Thananithichot, a political science lecturer at Chulalongkorn University, said a great deal of public support is directed towards the armed forces for its handling of the border conflict with Cambodia. And while such a party and candidate have yet to step up, existing political parties are likely to court the military and position themselves as its allies to capitalise on public sentiment as they prepare for the polls, he noted. While Bhumjaithai appears to be the most trusted option for conservative voters -- as opposed to the ruling Pheu Thai Party -- the party, as well as the United Thai Nation Party (UTN) and the Palang Pracharath Party (PPRP), have fallen short of expectations despite having been in the government for the past two years, he said. He said Bhumjaithai has seen a slight increase in popularity after withdrawing from the coalition government, which suggests that there are still millions of conservative voters up for grabs if the right strategy is in place. "When they see this significant voter base, all conservative parties will scramble for a strong prime ministerial candidate and economic policy, as well as a military reform plan that the public actually wants. But so far, no one has emerged," the analyst said. However, he said that outgoing central bank governor Sethaput Suthiwartnarueput appears to fit the bill. He is widely considered capable, committed to national interests, and did not bow to political pressure to safeguard the central bank's independence and maintain the country's international fiscal credibility. "Even if he is politically inexperienced, I don't think that voters will look at it as a problem. They're all too familiar with smooth-talking politicians with vested interests. The only question is whether Mr Sethaput has any interest in politics," he said. Mr Sethaput's five-year term at the central bank ends on Sept 30, and he will be succeeded by Vitai Ratanakorn, currently president and CEO of the state-owned Government Savings Bank (GSB). Thanaporn Sriyakul, director of the Political and Public Policy Analysis Institute, said a new conservative party will need figures like Mr Sethaput or former central bank governor Veerathai Santiprabhob to win over voters. Both have earned a lot of trust from technocrats and have shown that they have had no vested interests while in the jobs they occupied. This is in stark contrast to some towering figures who pull strings in politics, he said. However, he said if conservative voters feel deeply attached to the military, the chief of the defence forces, Gen Songwit Noonpakdee, who is scheduled to retire at the end of September, could be among their top choices for prime minister. Gen Songwit is regarded as a forward-thinking individual, as illustrated in his handling of Thai-Cambodian tensions, he said. "He's the first and only supreme commander to unify all branches of the armed forces under a strategic plan. In the past, each branch operated separately," he said. Whether the general harbours any political ambitions will only become clear after his retirement, he said. As for the Bhumjaithai Party, which is the most popular among the existing conservative parties, it still has much work to do if it wants to secure substantial support, according to Mr Thanaporn. First and foremost, it will have to come up with a military reform proposal to streamline the armed forces to make them lean, yet effective. However, Bhumjaithai will be competing with the People's Party (PP), which is reportedly devising its own ambitious reform platform, he said. According to the analyst, the PP's military reform plan is said to include trimming excess military spending and restructuring the armed forces to address not only the Cambodian border situation but also other potential flashpoints.
Bangkok Post
3 days ago
- Bangkok Post
Thailand's agriculture spending faces probe
Opposition MPs have raised concerns over the Ministry of Agriculture and Cooperatives' budget allocation, questioning a 41-million-baht investment in the development of a central agricultural market in Phayao. The comments were made during a special House session, convened to deliberate on the second reading of the budget bill for fiscal year 2026, amounting to 3.78 trillion baht. The session, chaired by House Speaker Wan Muhamad Noor Matha, continued into its second day following review by the special budget scrutiny committee. During the deliberation of Section 14 of the budget bill concerning the Ministry of Agriculture and Cooperatives' 62-billion-baht expenditure, Kittiphon Panphrommas, an MP for Nakhon Pathom from the People's Party (PP), proposed a reduction in budget allocations related to training and seminars totalling 56.27 million baht. He argued that such initiatives lacked measurable outcomes in terms of improving agricultural productivity or increasing the value of farmers' produce. Witwisit Pansuanpluk, an MP for Lamphun, also from the PP, questioned the rationale behind allocating 41 million baht to the Marketing Organisation for Farmers (Or Tor Kor) for constructing a single central market in the northern province of Phayao. He noted that this amount accounts for nearly half of the organisation's overall marketing budget. The project, he said, is part of a three-year financial commitment totalling 168 million baht. However, during a field visit on Sunday, it was found that the site -- allocated 32 million baht this year -- remains undeveloped and vacant. Mr Witwisit warned that, should the project succeed, it could lead to market monopolisation, disadvantaging farmers in neighbouring provinces. Conversely, if it fails, the facility risks becoming an abandoned "ghost market". "Why has Phayao been granted a higher investment budget than larger provinces in the North?" he asked. "The economic data shows that the value of Phayao's agricultural exports to Laos is three times lower than that of Chiang Rai and Nan. This raises a critical question about the selection of the location -- who stands to benefit from this? Was this decision driven by economic reasoning, or was it politically motivated?" he asked. Chetawan Thuaprakhon, a PP MP for Pathum Thani, queried the disproportionate allocation of funds for senior army officers' personal vehicle allowances compared to the budget for defence equipment intended to safeguard the Thai-Cambodian border. "In fiscal 2026, the Royal Thai Army has allocated 240.39 million baht for lump-sum payments in lieu of official vehicles for 694 senior officers," Mr Chetawan said.
Bangkok Post
3 days ago
- Bangkok Post
Agriculture spending faces probe
Opposition MPs have raised concerns over the Ministry of Agriculture and Cooperatives' budget allocation, questioning a 41-million-baht investment in the development of a central agricultural market in Phayao. The comments were made during a special House session, convened to deliberate on the second reading of the budget bill for fiscal year 2026, amounting to 3.78 trillion baht. The session, chaired by House Speaker Wan Muhamad Noor Matha, continued into its second day following review by the special budget scrutiny committee. During the deliberation of Section 14 of the budget bill concerning the Ministry of Agriculture and Cooperatives' 62-billion-baht expenditure, Kittiphon Panphrommas, an MP for Nakhon Pathom from the People's Party (PP), proposed a reduction in budget allocations related to training and seminars totalling 56.27 million baht. He argued that such initiatives lacked measurable outcomes in terms of improving agricultural productivity or increasing the value of farmers' produce. Witwisit Pansuanpluk, an MP for Lamphun, also from the PP, questioned the rationale behind allocating 41 million baht to the Marketing Organisation for Farmers (Or Tor Kor) for constructing a single central market in the northern province of Phayao. He noted that this amount accounts for nearly half of the organisation's overall marketing budget. The project, he said, is part of a three-year financial commitment totalling 168 million baht. However, during a field visit on Sunday, it was found that the site -- allocated 32 million baht this year -- remains undeveloped and vacant. Mr Witwisit warned that, should the project succeed, it could lead to market monopolisation, disadvantaging farmers in neighbouring provinces. Conversely, if it fails, the facility risks becoming an abandoned "ghost market". "Why has Phayao been granted a higher investment budget than larger provinces in the North?" he asked. "The economic data shows that the value of Phayao's agricultural exports to Laos is three times lower than that of Chiang Rai and Nan. This raises a critical question about the selection of the location -- who stands to benefit from this? Was this decision driven by economic reasoning, or was it politically motivated?" he asked. Chetawan Thuaprakhon, a PP MP for Pathum Thani, queried the disproportionate allocation of funds for senior army officers' personal vehicle allowances compared to the budget for defence equipment intended to safeguard the Thai-Cambodian border. "In fiscal 2026, the Royal Thai Army has allocated 240.39 million baht for lump-sum payments in lieu of official vehicles for 694 senior officers," Mr Chetawan said.
