Thailand sees no immediate need to raise public debt ceiling
Deputy Prime Minister Ekniti Nitithanprapas says Thailand still has about THB800 billion in fiscal space, with public debt at roughly 66% of GDP.
- Thailand's public debt currently stands at 66% of GDP, which is below the 70% ceiling, providing approximately THB800 billion in available borrowing space.
- Three major credit rating agencies (Fitch, S&P, and Moody’s) have not expressed concern over the country's current debt level.
- The rating agencies are more focused on the purpose of future borrowing rather than the amount, which the government plans to use for vulnerable groups and sustainable economic growth.
Finance Minister Ekniti Nitithanprapas said the Finance Ministry had reviewed its fiscal discipline framework, particularly the public debt ceiling set at no more than 70% of gross domestic product (GDP), while Thailand’s public debt currently stands at about 66% of GDP.
This indicates that around 4% of “fiscal space” remains, equivalent to about THB800 billion. Every 1% of GDP is worth roughly THB200 billion.
“As long as the government’s borrowing, or new debt, does not reach THB800 billion, there is still no need to raise the public debt ceiling from its current level.”
During his trip to attend the 2026 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group in Washington, D.C., the United States, he also had the opportunity to discuss the matter with executives from three leading credit rating agencies:
- Fitch Ratings
- S&P Global Ratings
- Moody’s Investors Service.
These institutions did not express concern over Thailand’s borrowing level, but placed greater importance on “the purpose of the borrowed funds”.
The Finance Ministry explained that future borrowing would focus on helping vulnerable groups affected by the energy crisis, while also driving the shift from dependence on fossil fuels to renewable energy (Transition), as well as economic restructuring (Transformation), to create sustainable long-term growth.
However, the government remains committed to the Medium-Term Fiscal Framework and to maintaining strict fiscal discipline.
As for whether the borrowing will be carried out through an emergency decree authorising the Finance Ministry to borrow funds, and what amount would be set, discussions with legal advisers and other relevant parties are still ongoing.
