Bangkok: The Budget Committee of 2027 engaged in a comprehensive discussion on the central budget, which has been increased by 1 billion baht to accommodate emergency reserves for disaster response and border operations. The meeting, part of the second Special Committee session considering the draft of the 2027 Budget Act, involved a detailed review of the proposed budget allocations.
According to Thai News Agency, the Budget Bureau elaborated on the central budget's rationale, setting it at 100,000 million baht. The 2027 central budget includes an additional allocation of 12,000 million baht aimed at economic and societal restoration, focusing on mitigating the energy crisis and supporting energy restructuring efforts. The objective is to foster a shift towards renewable and alternative energy sources, minimizing dependence on energy imports, and promoting a green economy transition.
The budget is allocated to various units, including 7,840 local administrative organizations, hospitals with operating funds, and universities with off-budget funds. Approval from the Cabinet is required for expenditure, with budget-receiving units needing to contribute at least 50% of the project's value from off-budget funds.
The central budget aims to address economic recovery, social restructuring, and energy crisis mitigation. It encourages budget-receiving agencies to utilize accumulated funds, thereby reducing budget burdens and improving the effectiveness of the Emergency Decree on Borrowing. This decree supports those affected by the energy crisis, promoting efficient energy use and the transition to renewable energy technologies.
The central budget for fiscal year 2027 is set at 100 billion baht, marking an increase from the previous year due to the growing severity of natural disasters and other crises, such as the Thai-Cambodian border crisis. These funds are necessary for compensation and relief efforts. Disbursement guidelines require justification from budget-receiving agencies, with different approval levels based on the expenditure amount.
The 2026 budget primarily addressed disaster mitigation and security concerns, including the Thai-Cambodian border crisis. However, Commissioner Wasawath Puangphornsri raised concerns about the timely disbursement of funds to border areas, highlighting the need for a designated budget in 2027.
The additional 1 billion baht is not solely allocated for the Thai-Cambodian border crisis but aims to provide enhanced public assistance in response to increasing natural disasters. The budget for border compensation includes expenses for conflict contingency plans, victim compensation, and support for injured and deceased victims.
Anan Kaewkamnerd, the Budget Director, affirmed that committee observations would guide future operations and development. Meanwhile, Ms. Natthida Thepsutin, a Pheu Thai Party MP, announced that the Prime Minister's Office budget would be the first to be discussed in the upcoming meeting.
The Bank of Thailand projects short-term economic growth despite inflationary pressures due to Middle East conflicts and rising commodity prices. The central budget seeks to address these economic challenges, with a focus on AI investment boosting technology exports and economic growth.
The National Economic and Social Development Council (NESDC) reported minimal economic impact from the Thai-Cambodian border situation, indicating limited cross-border trade volume. The extraordinary committee will begin reviewing the Prime Minister's Office budget in its meeting scheduled for July 6th.