23 April 2020
Covid-19: Thailand announces USD557 million cut in defence spending
by Jon Grevatt
Thailand has cut its 2020 defence budget by THB18 billion (USD557 million), with the funds set to be reappropriated by central government in support of a THB1.9 trillion stimulus package geared towards alleviating the impact of the coronavirus crisis.
The cut takes Thailand’s 2020 defence budget down to about THB213.7 billion, a reduction of nearly 8% compared to the planned military expenditure of THB231.7 billion, which was confirmed in budgetary documents earlier this year. Thailand’s defence budget in 2019 was THB227 billion.
Royal Thai Army (RTA) spokesman Colonel Winthai Suvaree confirmed the budget cut in a press conference on 22 April.
In comments reported by the state-owned Thai News Agency (TNA), Col Winthai said the budget cut will affect several RTA projects including the planned procurement of tanks, artillery systems, radars, and 50 additional General Dynamics Land Systems Stryker 8×8 infantry combat vehicles (ICVs) from the United States.
Thailand has postponed plans to procure additional Stryker ICVs (pictured) from the United States because of the impact of Covid-19. (US Army)
The Stryker procurement, which represents the RTA’s acquisition of a second batch of the vehicles, will now be rescheduled for 2021–22, said Col Winthai. The deal is reportedly valued at about THB4.5 billion (USD139 million). Funding for some of the vehicles will also be sourced through US military aid.
Thailand’s batch-one Stryker deal was announced by the US government in July 2019. According to the US Defense Security Cooperation Agency (DSCA), the deal was worth USD175 million and consisted of 60 vehicles, 60 M2 machine guns, and associated equipment. Delivery of these vehicles started in August 2019.
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Thailand has cut its 2020 defence budget by THB18 billion (USD557 million), with the funds set to be...
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