Prime Minister Anutin Charnvirakul has ordered that the fiscal 2027 budget be aligned with current crisis conditions, prioritising cuts to non-essential spending and limiting requests for additional budget allocations by government agencies to investment spending only.
According to government spokeswoman Rachada Dhnadirek, the prime minister on Monday delivered policy directives for the fiscal 2027 budget preparation, stating that this year’s budget process differs from previous years, as Thailand is facing a highly volatile global environment, particularly conflicts in the Middle East. As such, the government sector must urgently adapt, starting with a review and reduction of non-essential or misaligned projects to ensure maximum efficiency in budget utilisation.
Mr Anutin also stressed that the fiscal 2027 budget must be “targeted and precise”, aligned with the “10 Plus” policy framework to help the country navigate the crisis, while laying the foundation for sustainable development and accelerating efforts to escape the middle-income trap.
The government has set out five key policy pillars: economy, foreign affairs and security, society, disaster and the environment, and public administration.
On the economic front, priorities include income distribution, economic restructuring, and the promotion of trade, agriculture and tourism through targeted measures. In foreign affairs and security, the government aims to strengthen Thailand’s global role, accelerate accession to the Organisation for Economic Co-operation and Development by 2028, and enhance border security and public safety.
On the social front, efforts will focus on improving education and healthcare, while strengthening families and communities through the “Ageing Plus” and “Equal Education Plus” initiatives.
In disaster management and the environment, priorities include upgrading water management and response systems, alongside advancing towards net-zero emissions by 2050 under the “Green Economy Plus” policy.
For public administration, the focus will be on legal reform and improving government efficiency towards a fast, responsive bureaucracy, while addressing structural corruption through the “AI Plus” and “Thailand Plus” initiatives.
The fiscal 2027 budget framework is set at 3.78 trillion baht, an increase of only 7.4 billion baht or 0.2% from the previous year, despite an ongoing rise in mandatory spending.
The premier emphasised that budget utilisation must adhere to value-for-money principles and a zero-based budgeting approach, taking into account necessity, urgency and contextual appropriateness. A strict “golden rule” has been imposed: additional budget requests by government agencies must not exceed 20% of the previous year’s allocation and must be strictly for investment expenditure. Agencies are also instructed to reduce budget requests for study visits and scale back new office building construction, prioritising leasing instead. Where necessary, investment should be pursued through public-private partnerships, the Thailand Future Fund, and only to the extent required.
In addition, the government places importance on energy transformation by promoting clean energy adoption, such as the use of electric vehicles (EVs) or hybrid vehicles in the public sector, as well as the installation of solar rooftops across government agencies to address long-term energy challenges.
The government also emphasised the importance of safeguarding national sovereignty by strengthening comprehensive security readiness, particularly through the modernisation and adequacy of defence equipment.
The armed forces have been told to coordinate closely with the Budget Bureau to ensure careful planning, enabling Thailand to effectively protect its sovereignty and uphold national dignity, with cooperation from all sectors to drive security missions in a strong and sustained manner.