Thai Parliament Passes $106 Billion Budget Bill in Initial Vote

(Bloomberg) -- Thailand’s divided parliament passed the annual budget bill in an initial vote Saturday after a heated debate.

The fiscal plan received the backing of 251 lawmakers at a late-night sitting Saturday in Bangkok, with 234 abstaining. Implementation of the budget has been delayed, despite an economic slowdown, to allow the new parliament to assess it.

Lawmakers in January will vote twice more on the plan, which calls for 3.2 trillion baht ($106 billion) of spending and a budget deficit of 469 billion baht.

The ruling coalition has a small, two-seat majority, raising doubts about its ability to pass the legislation. The opposition bloc, which controls almost half of the lower house, faulted the budget for a lack of clarity on how some funds will be spent as well as the amount earmarked for defense.

“If the budget fails, it’s going to be a problem for the country,” Prime Minister Prayuth Chan-Ocha told reporters, responding to a question about the opposition’s threat to vote against the legislation if the government doesn’t amend it.

Prayuth returned as premier after March’s general election, and is at the helm of a pro-military coalition comprising more than a dozen parties.

The disputed poll was the first since a coup in 2014 that Prayuth led. Some opponents see the current administration as a continuation of the junta he oversaw, leading to a deep schism in parliament.

Trade and tourism-led Thailand is set for the weakest economic growth in 2019 in five years, as a global slowdown and a strong currency bite. The budget uncertainty adds to the challenges the nation faces.

To contact the reporter on this story: Siraphob Thanthong-Knight in Bangkok at rthanthongkn@bloomberg.net

To contact the editors responsible for this story: Sunil Jagtiani at sjagtiani@bloomberg.net, Christopher Elser

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