Budget Bureau proposes enactment of a mid-year budget

The Budget Bureau will propose guidelines for additional budget expenditure in 2024 to the May 21 Cabinet meeting, the Bureau’s director Chalermphol Pensoot, said today. This mid-year budget, amounting to approximately 122 billion baht, will be used to fund the government's economic stimulus policies.

“The proposed framework for consideration by the Cabinet aims to enable economic agencies to work together on ratifying the Additional Budget Expenditure Act. The Budget Bureau confirms that the implementation complies with all legal requirements and fiscal discipline frameworks," Chalermphol said.

The Budget Bureau and the Ministry of Finance have already discussed the constraints of the 2024 budget that has already been allocated to various agencies. Measures to expedite the spending of the 2024 budget have been implemented. However, the timeframe for budget spending is limited, and this could affect economic recovery. 

If the Budget Bureau were to opt for the enactment of the 2024 Budget Expenditure Transfer bill, this could result in all agencies putting a halt on their budget spending, potentially leading to an economic slowdown.

Another important point is that enacting the Budget Expenditure Transfer bill would take no less than two months. The meeting agreed that to ensure budget disbursement continues without interruption, it is appropriate to draft the Additional Budget Expenditure Act for 2024 at the earliest opportunity.

The mid-year budget is being proposed because various agencies have already incurred debt and disbursed their budgets since the 2024 budget was passed, meaning that the government cannot manage or cut the allocated funding in these areas.

The annual expenditure budget must also set aside funds for emergencies and urgent needs for the remainder of this year. Therefore, the government proposes an additional budget of approximately 122 billion baht to be used in part for the digital wallet project. This approach ensures that the budgets of other agencies are not affected.

For the mid-year budget, the government must draft an Additional Budget Expenditure Act, specifying the additional budget amount and its objectives. Once the Cabinet approves the draft, it must be submitted to Parliament for approval, following the same procedures as the regular budget. If Parliament approves, the process can proceed. However, if Parliament rejects the draft law, it will be discarded.

Generally, the government sets a mid-year budget when revenue collection exceeds targets. The excess funds are then used to stimulate the economy.

"It is crucial to monitor how the government's proposed mid-year budget of 122 billion baht will impact the additional budget deficit for the fiscal year 2024. This is because the Ministry of Finance has so far collected less revenue than targeted," a news source said.