Public Sector Payroll Hits 1.5 Trillion Baht, Over 40% of Budget
Public sector payroll expenses hit 1.5 trillion baht—over 40 percent of Thailand's national budget—raising concerns about whether remaining funds can effectively drive the country's development goals.
At a seminar titled "Behind-the-Scenes Budget Review" held on August 15 at Chulalongkorn University's economics faculty, committee member Watanya Bunnag addressed the fiscal year 2570 budget bill for the Thai parliament. She noted improvements in budget transparency, including live-streamed proceedings and budget data made available in both PDF and Excel formats, allowing for easier public scrutiny and analysis.
Bunnag highlighted that regional provincial budgets faced significant cuts this year, with some areas seeing reductions of nearly 80 percent. While this reflects the government's willingness to eliminate redundancy, she emphasized the need to monitor the impact on regional development and service delivery.
A key concern Bunnag raised is the high proportion of personnel-related expenditures in the state budget. When combining salaries, wages, pensions, benefits, healthcare costs, and contracted services embedded in operational budgets, personnel expenses are estimated at no less than 1.5 trillion baht—approximately 40 percent of the total budget. Some budget items, such as healthcare, are also underfunded compared to actual spending, suggesting hidden personnel costs may be even higher.
Bunnag argued that budget review should not focus solely on individual project allocations but should examine the overall budget structure and whether it aligns with national strategic goals. She stressed that if 40 percent of the budget goes to personnel, the remaining 60 percent must clearly demonstrate how it will drive transformation and advance the country's vision for the future.
