Picture courtesy of The Nation

Thailand’s political parties are under growing scrutiny after unveiling election policies with combined budgets exceeding 25 trillion baht, raising concerns about how such extensive spending would be financed. Critics warn that most proposals prioritise short-term economic stimulus while offering few credible plans to generate new revenue, potentially deepening the country’s long-running budget deficit.

The issue has emerged as parties submit policy details and campaign budgets to the Election Commission ahead of the general election. According to Sorathep Rojpotjanaruch, President of the Thai Restaurant Business Association and Honorary Advisor of the Thailand Hostel Association, only a small number of parties have clearly reported their campaign budgets or explained funding sources.

Thailand has faced persistent fiscal deficits for several years and projections suggest the next government could confront a shortfall of between 780 billion and 1 trillion baht by 2027. Despite this outlook, most proposed policies focus on injecting money into the economy rather than reducing recurring expenditures or reforming state finances.

Sorathep noted that neighbouring Vietnam reduced recurring government spending by 18% during its previous administration through civil service restructuring and early retirement programmes. By contrast, Thailand’s parties continue to rely heavily on populist spending policies, with little emphasis on cutting long-term costs.

Among the major parties, Pheu Thai has proposed an economic stimulus package worth 240 billion baht. Its key policies include a guaranteed minimum income of 36,000 baht per person per year and the “Half-Half Pro Max” scheme, under which the government pays 70% of costs and citizens 30%, with funding expected from a “Retirement Lottery”.

The Bhumjaithai Party has adopted a more conservative stance, pledging no increase in borrowing while continuing cost-of-living measures such as “Half-Half” Phase 2. However, concerns remain over its reliance on government bonds with a 2.5% interest rate, which critics argue still represents an expansion of public debt.

Prachachart Party has proposed a 741 billion baht budget focused on creating a welfare state and structural reform. Its “Receipt Lottery”, modelled on Taiwan’s system, aims to draw small and medium-sized enterprises into the tax base, while agricultural support would shift from price guarantees to subsidies, including a 20% debt reduction for farmers changing crops.

The Kla Tham Party has outlined the largest budget at 2.2 trillion baht, primarily targeting agricultural relief and water management. The Democrat Party has submitted 91 policies worth 2.1 trillion baht, including income guarantees for farmers and a 65,000 baht subsidy for newborns.

Thai Sang Thai Party stands out for clearly identifying funding sources, proposing a lending fund drawn from 17 trillion baht in national deposits held by wealthy savers. The party plans to offer loans to small borrowers at an annual interest rate of 12%.

Sorathep expressed disappointment that no party has prioritised tourism, Thailand’s second-largest income generator, in its core strategy. He said many proposals rely on superficial data and fail to address long-standing structural problems in the SME and agricultural sectors, which have been tied to price guarantee systems for more than 55 years.

Concerns have also been raised about healthcare and medical tourism policies, with critics questioning whether parties understand why key markets, such as visitors from Arab countries, have declined since the COVID-19 pandemic. Additional worries include unpaid government social security contributions that could increase future burdens on businesses.

The private sector has echoed these concerns, with Federation of Thai Industries president Kriengkrai Thiennukul warning that populist cash handouts risk harming Thailand’s long-term economic stability. He said policies totalling more than 25 trillion baht could foster dependency and fail to deliver sustainable growth.

Kriengkrai highlighted political instability as a barrier to reform, noting that recent governments have often lasted only one to two years. He warned that without a shift from short-term giveaways to structural reforms, Thailand may struggle to improve competitiveness and fiscal resilience.

The Nation reported that experts argue that the next government will face difficult choices between immediate voter appeal and long-term economic restructuring. Proposals such as reducing recurring expenditure from 71% to 60% of the budget, revising VAT from 7% to 10% with sector exemptions, and appointing professional managers to ministries have been suggested as potential paths forward.

Summary of Political Party Budgets:

Highest Budget Groups (Above Trillions)

• Puangchon Thai Party (No. 23) – 287.58 trillion baht

• Economic Party (No. 11) – 5.99 trillion baht

• Local Thai Party (No. 14) – 5.43 trillion baht

• Other Parties: Prom Party (3.1 trillion), Kla Tham (2.2 trillion), Democrat Party (2.1 trillion)

Lowest Budget Groups

• Palung Pheu Thai Party (No. 16) – 100 million baht

• Dynamic Party (No. 7) – 3 billion baht

• Thai Dharma Party (No. 40) – 5 billion baht

Eight Main Parties that Attract Public Attention

• Kla Tham Party – 2.27 trillion baht

• Democrat Party – 2.12 trillion baht

• Thai Kao Mai Party – 1.33 trillion baht

• Prachachart Party – 741 billion baht

• Thai Sang Thai Party – 497 billion baht

• Pheu Thai Party – 243 billion baht

• Bhumjaithai Party – 148 billion baht

• New Opportunity Party – 133-134 billion baht

Key Takeaways

• Political parties have proposed election policies worth over 25 trillion baht with limited clarity on funding sources.

• Experts warn that short-term populist spending could worsen Thailand’s budget deficit and delay structural reform.

• The next government is expected to face a projected fiscal shortfall of up to 1 trillion baht by 2027.

  

Adapted by ASEAN Now from Nation 2026-02-01

 

 

Happily the Peoples Party is not on the list and it shows that the other parties are bringing more troubles to Thailand as their programs are costly and not funded.. No wonder that everything will be taxed more

However, in this election run up, I have noticed far fewer of those infernal speaker trucks that make life a misery. Generally the spending controls read as a muddle - but it will all be over soon - hopefully.

(Yawn) Same same everywhere in the world where politicians go thru the motions ... We will do this and we will do that.

(Oh and um somehow we'll find the cash somehow.)

I remember those old B500 notes from the early 80s!!

Does your photo library not have a recent 500 note?🤣

Meanwhile NONE of them talk about educational reform.

Teach a man to fish etc.

Sounds very much like socialists will be running the country again. It is a well known fact, socialist governments always but always, run out of other peoples money.

She who must be obeyed just mentioned that she heard the People's Party's name is missing in some advance voting slips. Looks like a dirty trick this time.

This is Thailand where hardly anyone sees past tomorrow. There are no real Plans, only Bull<deleted> !