Thailand has yet to decide whether to raise its internal public debt ceiling, Finance Minister Ekniti Nitithanprapas said on Wednesday, as the government balances fiscal discipline against the need to respond to economic pressures.
Speaking at the International Monetary Fund-World Bank Spring Meetings in Washington, Nitithanprapas said the current 70 percent public debt-to-GDP ratio remains an internal benchmark guiding fiscal policy.
“We still put fiscal discipline under the core function of fiscal policy,” he said, adding that authorities are examining whether current conditions justify a revision of the ceiling.
The minister said discussions were ongoing about both the potential increase and how any additional borrowing capacity would be used.
“Given the crisis at the moment, frankly speaking, we are working into details whether we should internally increase the ceiling,” he said.
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Thailand, like many economies, is navigating a challenging global environment marked by slower growth, higher borrowing costs and external uncertainties.
Nitithanprapas said any decision to expand fiscal space would be tied to long-term structural priorities rather than short-term spending alone.
“In my opinion, we have to use it for transitions and transformations,” he said, pointing to plans to reduce dependence on oil and invest in renewable energy.
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He also highlighted the need to support vulnerable groups and invest in skills development to help workers adapt to economic changes.
The comments suggest that while Thailand remains cautious about loosening fiscal limits, it is considering targeted borrowing to support economic transformation and resilience.
Analysts say raising the debt ceiling could provide the government with greater flexibility to finance infrastructure, energy transition projects and social programmes, but may also raise concerns about debt sustainability if not carefully managed.
Thailand has historically maintained relatively prudent fiscal policies, using internal debt thresholds as a guide to ensure stability while allowing room for counter-cyclical support during periods of economic stress.
The government’s deliberations come as policymakers globally weigh how best to balance fiscal discipline with the need to support growth and protect vulnerable populations in an increasingly uncertain economic environment.
