With investment expenditure accounting for only 20.8% of the 2027 budget, business leaders are concerned there are insufficient resources to drive economic growth. Varith Hirunyatheb
Given the government's strong base of support in parliament, approval of the fiscal 2027 budget bill proceeded smoothly during the first reading earlier this month.This momentum was reinforced by the Constitutional Court's ruling last week that the 400-billion-baht loan decree did not contravene the constitution, dispelling any concerns about additional borrowing this year.
However, these developments have not eased business concerns over budget allocation, particularly the heavy burden of recurring expenditure while investment spending remains limited, potentially undermining the country's long-term competitiveness.
The government's investment budget should be raised to 25-35% of total annual expenditure to help transform the country, according to a think tank.
However, this is impossible without bureaucratic reform, reducing the size of the public sector, improving its efficiency, and simultaneously cutting unnecessary government spending, said Nonarit Bisonyabut, a research fellow at Thailand Development Research Institute.
