Senate Approves 10.3 Billion Baht Budget Reallocation Bill
Thailand's Senate approved a 10.3 billion baht budget reallocation on July 6 to help the government address energy cost crises and rising commodity prices that depleted the oil fund by nearly 60 billion baht.
The Senate voted 146-to-approve a bill reallocating 10.3 billion baht in government spending on July 6, 2024, following earlier approval by the House of Representatives. Minister Prasart Pirisananantakul, Secretary to the Prime Minister's Office, explained that the government needed additional funds to address crises stemming from Middle East instability and energy price hikes, which depleted Thailand's oil fund by nearly 60 billion baht.
The minister noted that Thailand imports most of its energy and cannot produce its own oil, forcing fuel price decontrol after the previous administration froze prices for 15 days. He stressed the government could not sustain emergency measures and required new revenue sources to support citizens affected by rising commodity costs.
Minister Prasart stated the government originally projected obtaining 80-100 billion baht but faced legal delays in April, pushing the reallocation process into June. During the interim period, government agencies accelerated spending to avoid budget cuts, with expenditures in the second and third quarters increasing 6-7 percent year-on-year. This acceleration reduced the final reallocation need to 10.3 billion baht.
The criteria for reallocation include redirecting unspent recurring allocations without obligations, single-year investment spending, and projects that agencies determined could be delayed. Excluded are budgets for parliament, courts, independent bodies, prosecutors' offices, state enterprises, and subsidized agencies. Major infrastructure projects from the Transport, Agriculture, and Higher Education ministries and multi-year projects will be handled separately.
