Picture courtesy of Kasikorn Research Center

 

Thailand's opposition is sounding alarms over the country's looming debt ceiling. The People's Party (PP) cautions that public debt, set to swell to 13.5 trillion baht in the next fiscal year, could see debt constituting 69% of GDP.

 

This narrowing margin leaves only about 210 billion baht available for additional borrowing.

Opposition MP Sirikanya Tansakun highlights the potential need to increase the public debt ceiling. She calls for clarity from the Ministry of Finance on managing this financial pinch.

 

With tax revenue missing last year's targets by nearly 80 billion baht, reliance has fallen on dividends from state enterprises like PTT Plc and the Government Lottery Office to bridge gaps.

 

In the current fiscal year 2025, which began in October, tax revenue continues to lag, with a shortfall of 33 billion baht in excise tax alone. The pressure mounts on state enterprises to generate 26.5% more revenue to compensate, sparking concerns over their sustainability.

 

Among the factors for declining revenue is the sharp decrease in tobacco excise tax by almost 20 billion baht since 2017, owed to the rise in illicit e-cigarettes and smuggled cigarettes. Meanwhile, government expenditure is projected at 3.78 trillion baht for the upcoming fiscal year, heightening concerns on how to finance such vast spending.

 

The central government contingency budget is likely to be tapped into, due to a mismatch in planned versus actual interest payments on past borrowings. Instead of the intended 11.3% interest, the government has only paid around 8%, dipping into treasury reserves to make up for the shortfall.

 

In response to these financial challenges, a proposal from the opposition suggests slashing the 2026 budget by 50 billion baht. However, Chanin Rungtanakiat, the House committee's spokesman, urges a deeper understanding of the necessity behind the government's proposed spending, rather than arbitrary cuts.

 

As Thailand sees its fiscal capabilities tested, key economic strategies and financial policies are critical to sustaining the nation's balance between expenditure and revenue.

 

  Adapted by ASEAN Now from Bangkok Post 2025-06-12

 

 

keep tourists away by keeping the bht inflated... that will surely do the trick. 

Outdated laws, and no investments of the old guard government have caused this... No tourists were good only the Chinese, other countries did not have the attention. And still Only Chinese tourists is what they are talking about.. But change things allow vaping, and tax it.. welcome tourists from other countries as guests instead of criminals. Stop making headlines in the news of a few tourists who don't behave correctly, handle the double pricing, renew the alcohol sales/buying hours, do something about the airpolution and road safety, as in driving as well in transport, stop constantly complaining that foreigners are bad and renew the labour law so that foreign guides can do a job instead of protect the guiding only for Thai people and many many more things can be done. Renew the rules to make a business 

What a mess these idiots have made of this country. Generations of normal Thai continously having their future stolen. 

So taxing expats didn't contribute much .

On 6/12/2025 at 6:50 AM, ikke1959 said:

Outdated laws, and no investments of the old guard government have caused this... No tourists were good only the Chinese, other countries did not have the attention. And still Only Chinese tourists is what they are talking about.. But change things allow vaping, and tax it.. welcome tourists from other countries as guests instead of criminals. Stop making headlines in the news of a few tourists who don't behave correctly, handle the double pricing, renew the alcohol sales/buying hours, do something about the airpolution and road safety, as in driving as well in transport, stop constantly complaining that foreigners are bad and renew the labour law so that foreign guides can do a job instead of protect the guiding only for Thai people and many many more things can be done. Renew the rules to make a business 

You've been paying attention I see...

On 6/12/2025 at 4:06 AM, webfact said:

could see debt constituting 69% of GDP.

Calm down....

Other countries would be happy to come near to it but inflating the debt horribly (US)

69% is not a big deal these days. They could go up to 80% and it would not be a big problem. It is all relative. In China people save too much and spend far less of their earnings than many others countries. The Western nations are the great lovers of debt. 

I presume that it is significant that it is the Opposition that is raising this issue. There is a statement that tax revenue will fall short of predictions by at least Bt 33 billion this year.

However, only yesterday, Suriya Jungrungreangkit, the Transport Minister, was touting all the projects he was going to authorise. It was hard to join the figures together, but there was a budget of over Bt 212 billion for this year, and future porjects identified at Bt 373 billion, along with a statement that funds were "readily available. He is only interested in his commission, with no concerns over the revebue shortfall, and his commission on its own would more than cover it.

Sickening.

Simple solution. Cut the commission, 20 to 30% I expect, from all Government expenditure budgets in every Ministry. There will suddenly be an excess, which could be used to help the less well off in Thailand. Will it happen? Never, not even thought about.

Who gives a toss it's only a number 😂🤣