Thailand's FY2027 Budget Bill Faces Criticism: Lacks Future Vision, Tax Reform Urged

Former Thai Prime Minister Abhisit Vejjajiva, a list-MP for the Democrat Party, has sharply criticized the draft budget bill for the 2027 fiscal year, describing it as a budget that "lacks a future vision" and is merely for "earning a living day-to-day." He warned that the public debt could surge to 80-90% of GDP within 5-10 years if the government does not urgently reform the revenue and expenditure structure. Mr. Abhisit stated that the problem is not solely due to the current government but is a result of long-standing issues in the budget structure. However, he emphasized that the government has a crucial role in solving problems and laying the foundation for the country to move forward amidst global changes and ongoing crises. Currently, government tax revenue is only sufficient for recurring expenses and debt repayment, with investment budgets entirely reliant on borrowing. This reflects a limited revenue-generating capacity, with the tax-to-GDP ratio at a historical low of 14.6%. He urged the government to undertake significant tax system reforms to support the increasing welfare needs of the people. He also noted that the FY2027 budget fails to increase the elderly allowance to 1,000 baht, does not raise the disability allowance, and cannot implement universal child support for newborns. He asserted that without tax reform, these welfare goals would remain unattainable. Regarding the budget structure, Mr. Abhisit pointed out that personnel expenses increased by 3.8% and subsidies by 5.6%, while investment expenditure decreased by a significant 13.1%. This leaves virtually no room for concrete new investment projects. Although the government plans to borrow an additional 400 billion baht, most of it is allocated to measures promoting the import of solar panels and electric vehicles, rather than investing in enhancing the country's capabilities. Progress on Public-Private Partnership (PPP) projects also remains unclear. Furthermore, Mr. Abhisit observed that several personnel expense items, such as civil servant pensions and public healthcare costs, are set below actual expenditures. He proposed that the government define the direction for managing the public workforce and reform the welfare system for new civil servants to reduce the long-term budget burden. On the public debt status, Mr. Abhisit stated that while the budget document shows 66.4% of GDP, the debt would approach 69% if the full 400 billion baht in additional borrowing is realized. Including the contingent liabilities under Section 28 of the Fiscal Discipline Act, estimated at approximately 1 trillion baht, the actual debt burden already exceeds 70%. He warned that if state revenue does not grow by more than 4% annually on average, public debt could reach 80-90% within 5-10 years. He also criticized the increased budget allocation to the Ministry of Digital Economy and Society (DE). While cloud system investment is necessary, he argued that the government lacks a clear vision or strategy for utilizing technology and Artificial Intelligence (AI) to create added value for the country. He believes many agencies are merely using the term "AI" as a trend without concrete investment plans for economic benefits. In conclusion, Mr. Abhisit stated that although the budget document outlines the principle of budget management based on the "5T" concept (Targeted, Transparent, Tackling crises, Transforming, and Togetherness), the content of the budget does not reflect these principles. He summarized that the Democrat Party "sees no future" in this draft budget, deeming it a "day-to-day earning" budget focused on managing the situation rather than building the nation's future. Source: INN News