The implementation of the fiscal 2024 budget, starting on Oct 1, will be delayed if the new prime minister and government are not appointed within this month, according to the Budget Bureau.
Budget Bureau director Chalermphol Pensoot said if the new premier and government do not assume office in July, the entire budget for fiscal 2024 will need to be reconstructed, starting with a meeting of the Budget Bureau, the Finance Ministry, the Bank of Thailand and the National Economic and Social Development Council.
“The bureau has yet to change the fiscal 2024 budget timeline, which was originally expected to coincide with the selection process for the prime minister by parliament in July, with the new premier and cabinet expected to begin their duties in August,” said Mr Chalermphol.
Based on these expectations, he said the bureau would start the process of preparing the fiscal 2024 budget in August, starting with the submission of the budget timeline for cabinet consideration in the second week of August.
Next a joint meeting of the four agencies would be scheduled to establish the new fiscal 2024 budget framework.
The agencies would then submit budget requests to the Budget Bureau for screening and presentation to the cabinet, while the draft Budget Expenditure Act for fiscal 2024 is reviewed by parliament during its first session in December.
The act would come into effect in March 2024, or be delayed beyond the regular budget timeline by roughly six months, said Mr Chalermphol.
During this period, government agencies can utilise budgets based on the criteria approved earlier by the cabinet.
In January, the cabinet approved a budget of 3.35 trillion baht for fiscal 2024. The new budget is 5.18% larger, or 165 billion baht higher, than in fiscal 2023.
In a separate development, the cabinet yesterday acknowledged the Finance Ministry proposal that it did not plan to extend the excise tax cut on diesel of 5 baht per litre after this measure ends on July 20.
The government has implemented measures to reduce the excise tax on diesel since February last year, designed to ease the cost of living.
According to the Finance Ministry, the previous seven reductions in diesel fuel excise tax by the government significantly affected state revenue collection, by up to 156 billion baht.
Deputy government spokeswoman Rachada Dhnadirek said the Finance and Energy ministries held discussions and reached a consensus that tax measures to reduce the excise tax rates on diesel fuel, after the current measure ends on July 20, would have a binding effect on the new government.
Section 169 of the 2017 constitutional law states the interim government is unable to approve measures or projects that have a binding effect on a new government.