Thailand’s 3.78 trillion baht ($115 billion) budget for the 2026 fiscal year has cleared its initial parliamentary vote, following a four-day debate.
The draft budget bill, designed to bolster a sluggish economy under pressure from steep U.S. tariffs, was approved with 322 votes in favour and 158 against. While the Pheu Thai Party-led government holds a majority in the House of Representatives, internal tensions within the coalition were evident during the proceedings.
The vote was seen as critical for the administration; a defeat could have compelled Prime Minister Paetongtarn Shinawatra to resign, paving the way for a new premier elected by parliament, or to dissolve the house and call a general election.
The bill must still pass two additional readings in the lower house—anticipated in August—before being submitted for Senate and royal approval. The 2026 fiscal year begins on October 1.
