Accordingly, the army, navy and air force will receive a two-percent raise taking next year's spending to 210.7 billion baht (nearly US$6.1 billion).
The budget comes into effect in October and runs until September 2017.
It is the third straight year of rises in state spending for defence since the army seized power from the civilian government in 2014.
Meanwhile, the budget for education was given a 4.7% cut to 493 billion baht (US$14.1 billion) and transport was cut by two thirds to 63.5 billion baht.
The budget will be spent based on laws and rules to maintain the country's fiscal discipline, Deputy Prime Minister Wisanu Krea-Ngam said in televised comments at the end of the vote.