Bangkok: The Cabinet has approved the 2027 budget strategy, which focuses on cutting unnecessary expenses and reallocating funds to drive economic recovery amidst high oil prices, in line with the "Thailand Helps Thailand" policy.
According to Thai News Agency, Mr. Paradorn Prisnanantakul, Minister attached to the Prime Minister's Office, announced that the Cabinet has approved a budget strategy totaling 3.788 trillion baht. This strategy involves streamlining the integrated plan from nine programs to three: the water management integrated plan, the digital government integrated plan, and the public welfare integrated plan. Notably, the budget for provincial groups will experience a significant reduction from 20 billion baht to 4 billion baht, with a focus on local development, tourism, and essential investments. These reallocations are designed to aid economic recovery following the energy crisis, with an aim to enact the 2027 budget bill by October 1, 2026.
The Cabinet has directed all government agencies to revise their budget plans for 2027, emphasizing projects related to leasing electric vehicles and installing solar rooftops. Consequently, funding requests for study trips and construction projects should be deferred. The Budget Bureau will accept budget requests from government agencies until May 1, 2026. Proposed projects must address issues such as Middle East unrest, national situation management, and corruption prevention, with an overall budget of approximately 700-800 billion baht earmarked for these priorities.
To support the public and businesses, the "Thailand Helps Thailand" program includes initiatives for vulnerable groups, welfare cards, and the "Half-Price Plus" scheme, aiming to benefit 20-30 million people with top-up payments of 2,000-2,500 baht per person. The Ministry of Finance is assessing the prolonged energy crisis to determine merchant participation timelines. Additionally, the Bank for Agriculture and Agricultural Cooperatives (BAAC) is tasked with providing low-interest loans under the "Half-Price" scheme to support farmers in purchasing fertilizers at reduced costs. The Ministry of Commerce requires substantial funding for further public support under the "Thailand Helps Thailand" initiative.
Mr. Paradorn also mentioned the government's proposal to enact a Budget Transfer Act for fiscal year 2026, with submission expected by June 2026. This act will set a deadline for government agencies to expedite budget disbursement, with estimates ranging between 80 and 100 billion baht. Furthermore, the 2027 budget will allocate 70 billion baht to replenish the treasury, allowing funds to be immediately used for public relief without needing to repay treasury debt first.