About 3 billion baht has been slashed from the proposed budget plans of the armed forces, according to a source close to a House sub-committee vetting budget expenditure for the 2023 fiscal year.
The sub-committee on durable goods, ICT, state enterprises and working capital has now finished its examination of budget allocations including for the armed forces.
Of the total cut, about 2 billion was slashed from the army's proposed spending, 700 million baht from the air force's proposed budget and the remaining money from the navy's funds.
One of the army schemes affected by the cut was the procurement of electric buses estimated at 300 million baht.
The sub-committee, chaired by Sorawut Nuengchamnong, a Palang Pracharath Party (PPRP) MP for Chon Buri, said the army's missions involved long-distance trips or heavy-duty tasks and the electric vehicles were unlikely to meet its requirements.
The remaining cut of 1.7 billion baht was for tied-over accounts including a helicopter procurement scheme, for which the terms of reference (ToR) have not yet been finalised.
As for the air force, the budget cut of 700 million baht is part of its plan to procure two F-35A fighter jets at a cost of 7.4 billion baht from the US. Only about 700 million baht in the budget was requested in the 2023 fiscal year, while the rest would be sought in later years.
The sub-committee said it decided to drop the air force's request for funding because it did not receive any confirmation as to whether the US Congress would approve the sale.
Meanwhile, the navy's cut of 200 million baht was for personnel training related to its submarine acquisition scheme. The sub-committee cited an engine problem that could lead to the scrapping of the deal as the reason for the cut.
The navy gave China Shipbuilding & Offshore International Co (CSOC) two more months to honour its agreement to supply the navy with an S26T Yuan-class submarine with a German-made MTU396 diesel engine.
If CSOC cannot fulfill the agreement by the new deadline, or by Aug 9, the navy would be forced to consider terminating the contract. Thailand procured its first Yuan-class S26T submarine from China back in 2017 for 13.5 billion baht.
According to the source, the sub-committee's budget cuts are not final and they will be reviewed by the main House committee on Aug 2.