Thai PM Paetongtarn Shinawatra Defends 3.78 Trillion Baht Budget Amid Opposition

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Prime Minister Paetongtarn Shinawatra has presented a comprehensive 3.78 trillion baht budget proposal for the fiscal year 2026 to the House of Representatives, kicking off a four-day debate culminating in a vote on Saturday, May 31. The People’s Party has voiced opposition to the plan, critiquing it for failing to tackle current economic challenges.

Paetongtarn crafted the budget based on economic projections indicating growth between 2.3% and 3.3% next year, spurred by domestic spending, private investment, and a resurgence in tourism. Inflation is projected to be between 0.5% and 1.5%, with a current account surplus expected at 2.3% of GDP. The proposal suggests a 0.7% rise in spending and a reduction in the budget deficit to 860 billion baht, representing 4.3% of GDP, from the previous fiscal year.

However, the Prime Minister highlighted potential risks to economic stability, including trade barriers, geopolitical issues, and extreme weather conditions. Despite opposition criticism, Paetongtarn remains confident in the budget's potential to stimulate economic growth, stressing that it has been reviewed by various agencies.

The opposition leader, Natthaphong Ruengpanyawut of the People’s Party, criticised the government's lack of a strategic spending approach. He emphasised concerns over excessive spending without a clear investment or revenue plan.

Sirikanya Tansakun, deputy leader of the People’s Party, argued the budget does not meet the country’s needs, with plans scrutinised for unnecessary spending and corruption risks during the thorough four-day review. She asserted that the party would not support the budget, seeking unity among opposition parties to reject it.

Amid these debates, tensions simmer within the Pheu Thai-led coalition, particularly with the Bhumjaithai Party. Conflicts have emerged over government initiatives, such as a controversial casino bill intended to boost tourism and disagreements over cannabis regulation, which was decriminalised in 2022 but now faces tighter controls. These internal strains accompany the budget discussions, adding complexity to achieving coalition consensus.

  Adapted by ASEAN Now from The Thaiger 2025-05-29