Thai House of Representatives to make 7.8 billion baht budget cut

The House of Representatives is set to proceed with the second and third readings of the budget bill for the 2025 fiscal year next week. This development comes amidst reports that the proposed spending plan has been reduced by nearly 8 billion baht.

House Speaker Wan Muhamad Noor Matha announced that the budget debate will take place from September 3 to 5, following a comprehensive review by a House committee assigned to scrutinise the bill.

The 3.75-trillion-baht budget bill initially passed its first reading in June, securing 311 votes in favour, 175 against, and two abstentions.

A special 72-member House committee, including 18 cabinet representatives and 54 from both government and opposition parties, was established to vet the bill. Finance Minister Pichai Chunhavajira chaired this committee, which has since trimmed the spending plan by 7.8 billion baht. Significant cuts have been made across various sectors.

Revolving funds managed by several agencies have been reduced by 2.1 billion baht. The Village Fund faces a 2 billion baht cut, while the Science Research and Innovation Fund and the National Saving Fund see reductions of 100 million baht and 10 million baht, respectively. Integrated schemes have also been affected, with a total decrease of 788 million baht.

The Defence Ministry’s allocated budget has been cut by approximately 1.18 billion baht. The Royal Thai Army’s funds were reduced by 688 million baht, the Royal Thai Navy by 151 million baht, and the Royal Thai Air Force by 113 million baht. These cuts primarily impact construction and renovation projects.

The Interior Ministry’s budget has been slashed by 395 million baht. The Department of Disaster Prevention and Mitigation will see a reduction of 44 million baht, affecting a disaster warning system development programme. The Department of Public Works and Planning faces a 100 million baht cut, influencing river embankment projects across several provinces.

The Prime Minister’s Office is not spared, with budget reductions amounting to 371 million baht. Key agencies affected include the Internal Security Operations Command, which faces a 108 million baht cut, the National Cyber Security Agency with an 11 million baht reduction, and the Digital Government Development Agency, which will lose 4 million baht.

The Ministry of Agriculture and Agricultural Cooperatives will experience a budget decrease of 367 million baht. This reduction will impact various programmes, including drought and flood studies and environmental impact assessments, reported Bangkok Post.

“The budget cuts reflect a need to streamline spending and prioritise essential services.”