Debt hike a ‘last resort’
Mr Ekniti, also a deputy prime minister, said on Wednesday (Apr 22) the government would first prioritise reallocating expenditure within the 2026-2027 fiscal budgets before contemplating any increase in the debt…
Deputy Prime Minister Ekniti Wiboonma announced Wednesday that the Thai government will prioritise reallocating funds within the 2026-2027 fiscal budgets before considering any hike to the public debt ceiling, currently set at 70% of GDP. Speaking in Phuket, he described raising the debt limit as a “last resort,” emphasising that emergency borrowing powers would only be used if budget adjustments prove insufficient.
Budget Reallocation Measures and Timeline
Ekniti outlined that government agencies with undisbursed funds for the 2026 fiscal year have until April 30 to allocate their budgets. Unspent allocations will be reclassified as central funds to address urgent needs, including fallout from the Middle East war and support for vulnerable groups.
He said that B70-100 billion could be reallocated from the 2026 budget, with an additional B25 billion in central funds, creating a reserve of B95-125 billion. The government expects to submit a budget transfer bill to parliament by mid-June to expedite this process.
Debt Ceiling and Contingency Borrowing
Thailand’s public debt stands at about 66% of GDP, leaving B800 billion in borrowing headroom below the 70% ceiling set by the Monetary and Fiscal Policy Committee. Ekniti noted that the ceiling was previously raised from 60% during the COVID-19 crisis and could be adjusted again if necessary.
He stated that if emergency borrowing is required, any loan decree would not exceed B500 billion. The National Economic and Social Development Council forecasts GDP growth of 1.4% for 2026 and 2.2% for 2027, with inflation rates at 2.9% and 1.5% respectively.
Source: https://www.thephuketnews.com/debt-hike-a-last-resort-100002.php
