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Thailand’s 2026 fiscal budget, totaling 3.78 trillion baht ($115 billion), passed its first parliamentary hurdle on Saturday following a four-day debate. The draft bill, designed to stimulate an economy weakened by global headwinds and steep U.S. tariffs, secured 322 votes in favor and 158 against.
Led by the Pheu Thai Party, the ruling coalition holds a parliamentary majority, but internal tensions have surfaced. This initial approval marks a significant political win for Prime Minister Paetongtarn Shinawatra, as a failed vote could have led to her resignation or forced a snap election.
The budget still faces second and third readings in the House of Representatives, scheduled for August, before moving to the Senate and ultimately seeking royal endorsement. The 2026 fiscal year begins on October 1.
Analysts say the budget reflects urgent government efforts to jumpstart economic growth, strengthen public investment, and counteract pressure from trade tensions, particularly with the U.S. The outcome of this budget process is expected to heavily influence Thailand’s political stability and investor confidence going into the next fiscal cycle.
The proposed spending plan is seen as critical to implementing key policy initiatives, with observers closely watching how coalition dynamics may impact future votes. As the Thai government pushes forward, the path to full enactment remains closely tied to both economic strategy and political cohesion.
