Thai Examiner
Time for government to tighten its belt as debt ceiling looms as public debt surges from the pre Covid era
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Thailand’s debt races towards its 70% ceiling as chief economic planner Danucha Pichayanan demands 2–3 years of tight budgets. Debt servicing tops ฿400 billion yearly and weak growth, falling revenue and ageing costs tighten Bangkok’s fiscal squeeze.
Key facts
- Thailand’s debt races towards its 70% ceiling as chief economic planner Danucha Pichayanan demands 2–3 years of tight budgets
- Meanwhile, debt servicing already exceeds ฿400 billion annually, while some projections breach the ceiling by 2028
- Thailand’s public debt surges from 41.1% before Covid-19 as revenue falls and spending pressures rise
- Debt servicing tops ฿400 billion as Danucha calls for two to three years of tighter Thai budgets
- Thailand’s large deficits and rising debt draw fresh warnings as projections approach the 70% ceiling
- Emergency borrowing and weaker growth threaten to push Thailand’s public debt through the 70% ceiling
Summary
Thailand is rapidly burning through its financial firepower as public debt hits 67.5% of gross domestic product, close to the 70% ceiling. The country entered Covid-19 near 41%, but much of that borrowing cushion is gone. National Economic and Social Development Council chief Danucha Pichayanan wants two to three years of tight budgets to rebuild it. His warning comes as growth weakens, revenue falls and ageing costs rise.
Thailand is running short of fiscal room as public debt closes rapidly on the government’s statutory ceiling. The country’s chief economic planner now wants two to three years of tight budgets.