Thai government's $115B budget clears first parliamentary vote

By Reuters May 31, 2025 | 04:49 pm PT

Thailand's Prime Minister Paetongtarn Shinawatra arrives ahead of a no-confidence vote at the parliament in Bangkok, Thailand, March 26, 2025. Photo by Reuters

The Thai government's 3.78 trillion baht ($115 billion) budget for the 2026 fiscal year passed its first parliamentary vote on Saturday, but there will be a series of further votes before it can be enacted.

After a four-day debate, the draft budget bill, aimed at supporting a sluggish economy facing steep U.S. tariffs, passed with 322 votes in favor and 158 against. The Pheu Thai Party-led government has a majority in the House of Representatives, but there have been some tensions in the coalition.

The budget vote is crucial to the government as a defeat could have forced Prime Minister Paetongtarn Shinawatra to either resign and make way for a new premier elected by parliament, or dissolve the house and call a general election.

The budget will still need to pass second and third readings in the lower house, expected in August, before being sent for Senate and royal approval. The 2026 fiscal year starts on Oct. 1.