Bangkok: The Senate has given its approval to the Budget Transfer Act, as explained by Mr. Paradorn Prisnanantakul, Minister attached to the Prime Minister's Office, during a recent Senate meeting. The funds under this act are aimed to be used with transparency and accountability, and will not be for any political advantage.
According to Thai News Agency, the enactment of this act came after the February 8th election, amid ongoing Middle East conflicts that triggered a major energy crisis. Thailand, which relies heavily on imported energy, faced high oil prices. The previous caretaker government had temporarily frozen oil prices for 15 days using the Oil Fund, leading to a deficit of nearly 60 billion baht. Once the current government took charge, it became clear that relying on the fund was unsustainable, leading to a necessity to float oil prices. This shift resulted in higher market prices for various goods and services.
Mr. Paradorn elaborated that the government's policy focused on budget reallocation due to inadequate funds to address the crisis. The draft Budget Act was part of the government's policy statement to Parliament, aiming to gather approximately 80-100 billion baht. Combined with contingency funds, this would have totaled nearly 150 billion baht to support the public. However, legal issues in April delayed the immediate transfer of funds.
From early April to June 2nd, government agencies expedited budget disbursement, knowing the government's intent to reallocate funds for public relief. The disbursement figures significantly increased compared to the previous year. As a result, the forecasted budget was reduced to 10.3 billion baht.
The criteria for fund transfer include unspent recurring expenses without obligations and investment expenditures eligible for deferral. Mr. Paradorn emphasized that projects under the Ministry of Transport and others remain intact, although some funds were reclaimed. The reclaimed funds are intended for urgent and necessary expenditures amid ongoing conflicts and potential natural disasters.
Regarding the flood crisis in Hat Yai, Songkhla province, Mr. Paradorn noted that the government, alongside relevant agencies, has prepared for such events. The focus is on improving public warning and evacuation procedures, drawing lessons from previous experiences.
Mr. Paradorn assured the Senate that the funds from the budget transfer would be utilized effectively and transparently, without political bias. The Senate voted with 146 in favor, 4 against, and 20 abstentions, allowing the draft budget transfer bill to proceed to the enactment process.