Section 28 Debt Ceiling May End 1,000 Baht Per Rai Farmer Aid

Thansettakij•Economy•10d ago

Reader Briefing

Fiscal constraints under Section 28 of the State Fiscal and Financial Discipline Act prevent the government from providing the 1,000 baht per rai production cost reduction aid to farmers this year.

•The government's accumulated debt to state financial institutions under Section 28 has reached approximately 1.1 trillion baht.
•The current utilization of the Section 28 ceiling is approximately 30.5%, with a maximum limit of 32% of the annual expenditure budget.
•The Bank for Agriculture and Agricultural Cooperatives (BAAC) had advanced 826,861 million baht as of March 31, 2026.
•Budget constraints prevent the implementation of the 1,000 baht per rai cash grant for farmers this year.

Overview

•Mr. Chatchawal Pattayathai, an MP for Roi Et, questioned the Extraordinary Committee on the 2027 Annual Budget Bill regarding the government's obligations under Section 28 of the State Fiscal and Financial Discipline Act.
•Mr. Pharadon Prisnananthakul, Minister attached to the Prime Minister's Office, stated that the government will have the Bank for Agriculture and Agricultural Cooperatives (BAAC) advance payments for farmer aid before the government gradually reimburses them.
•Mr. Weera Theeraphatranon clarified that the Section 28 spending ceiling is set at 32% of the annual expenditure budget, and current usage is at approximately 30.5%.
•As of March 31, 2026, the Bank for Agriculture and Agricultural Cooperatives (BAAC) has advanced a total of 826,861 million baht, consisting of 719,000 million baht in direct debt and 17,000 million baht transferred to the Public Debt Management Office.
•Total accumulated outstanding payments advanced by state specialized financial institutions to the government under Section 28 amount to approximately 1.1 trillion baht.
•Mr. Weera Theeraphanon explained that while the government can use about 50,000 million baht annually under Section 28, most must be allocated as concessional loans rather than grants.
•The government cannot allocate budget for the 1,000 baht per rai production cost reduction project for farmers this year due to fiscal ceiling limitations under Section 28.

Full article content is available on the original source.

Read on Thansettakij (Thai Version)View in Google Translate

Source: Thansettakij (Original)

Key Entities

Person

Chatchawal Pattayathai(ชัชวาล แพทยาไทย)

An MP for Roi Et who questioned the budget committee regarding Section 28 obligations.

Pharadon Prisnananthakul(ภราดร ปริศนานันทกุล)

Minister attached to the Prime Minister's Office who outlined the farmer aid payment approach.

Weera Theeraphatranon(วีระ ธีระภัทรานนท์)

A member of the Extraordinary Committee on the 2027 Annual Budget Bill who clarified the Section 28 fiscal framework.

Organization

Bank for Agriculture and Agricultural Cooperatives (BAAC)(ธนาคารเพื่อการเกษตรและสหกรณ์การเกษตร (ธ.ก.ส.))

A state financial institution that advances funds for government policies under Section 28.

Government Savings Bank(ธนาคารออมสิน)

A state financial institution mentioned as an entity that can advance funds under Section 28.

Public Debt Management Office (PDMO)(สำนักบริหารหนี้สาธารณะ (สบน.))

The office to which some of the BAAC's advanced funds were transferred.

Law

State Fiscal and Financial Discipline Act(พ.ร.บ.วินัยการเงินการคลังของรัฐบาล)

The law containing Section 28 which governs the government's financial obligations and spending ceilings.

Policy

1,000 Baht Per Rai Project(ไร่ละ 1,000 บาท)

A government aid project to reduce rice production costs for farmers.

Place

Roi Et(ร้อยเอ็ด)ℹ️

The province represented by MP Chatchawal Pattayathai.