Budget debate for 2027: “Pradorn” explains provincial budget cuts to resolve overlapping spending, emphasizing funds must drive local economic development, not build roads or water projects. He stresses the government does not allocate budgets based on political connections or influence in politics. "budget debate, provincial budget, economic development, government allocation, political influence"
At 18:04 on 30 June 2026 GMT+7"time, date" Mr. Pradorn Prissanananthakul, Minister attached to the Prime Minister's Office"government official, minister" overseeing the Budget Bureau, explained to the House of Representatives during the 2027 fiscal year budget bill deliberation, totaling 3.788 trillion baht, regarding the"budget bill, House of Representatives, Budget Bureau, fiscal year 2027" reduction of provincial budgets."provincial budget reduction" He stated"statement" that reducing provincial budgets is not aimed at limiting local development but to ensure provinces use funds according to objectives: to strategize economic development, improve quality of life, and create major projects that attract investment, rather than spending on redundant duties."budget reduction purpose, local development, economic strategy, project funding" For example, building or repairing roads is the responsibility of the Department of Highways and the Department of Rural Roads, while water projects fall under the Royal Irrigation Department."road construction, water projects, responsible agencies"
Meanwhile, urgent projects were often not prioritized by responsible agencies but were instead hidden within provincial budgets. Therefore, new criteria were introduced by the previous government through the Provincial and Group Policy Management Committee (PGPMC) to prevent overlapping expenditures and require each agency to prioritize its projects independently."urgent projects, budget prioritization, PGPMC, overlapping budget prevention"
The minister emphasized that provincial budgets should be used to develop tourism, generate income, and boost local economies—not to justify road construction or solar panel installation that deviates from the original purpose. This is a key reason the government cut tens of billions from provincial budgets. Although the Ministry of Interior is the most affected, the government insists on following the established criteria."tourism development, local income, budget purpose, government budget cuts, Ministry of Interior"
At the same time, Mr. Pradorn addressed decentralization, stating that increasing provincial budgets is not decentralization because power remains centralized. True decentralization requires transferring budgets directly to local administrative organizations (LAOs)."decentralization, provincial budgets, local administrative organizations, power distribution" Despite overall budget constraints this year, the government has increased the proportion allocated to LAOs and reallocated funds to improve fairness."budget constraints, LAO budget increase, fair allocation" Large local administrative organizations with high revenue and reserves will receive reduced special grants, while subdistrict municipalities and smaller localities will receive increased allocations to ensure broad distribution of funds. The government emphasizes it will not allocate budgets based on political connections or influence but will uphold fairness."local government finance, grant allocation, equitable distribution, political neutrality"