Thailand’s public debt is projected to reach 69.36% of GDP by 2027, requiring refinancing. The government plans to use unspent funds to support vulnerable groups, clean energy initiatives, and develop AI skills.
Projected Debt and Fiscal Landscape
Thailand’s public debt is anticipated to reach 69.36% of GDP, nearly hitting the statutory limit by 2027. With an estimated 13.79 trillion baht in obligations, the country faces a significant debt-servicing challenge—1.45 trillion baht in principal is set to mature that year, compounded by interest payments that raise the total to 1.81 trillion baht. Only 4% of the budget is allocated for debt repayment, necessitating a focus on refinancing.
Financial Management Strategies
With a limited borrowing capacity of about 800 billion baht, the government prioritizes efficient reallocation of existing resources. Deputy Prime Minister Ekniti Nitithanprapas highlighted plans to reclaim unspent funds, estimating recovery between 70 billion and 100 billion baht from unsuccessful fiscal 2026 projects, aimed at addressing financial obligations.
Fiscal Buffer for Economic Initiatives
The reclaimed funds, alongside 25 billion baht from central reserves, will create a 125 billion baht fiscal buffer. This buffer will support vulnerable groups, expedite the shift towards renewable energy, and invest in human capital. Strategies include promoting solar energy, subsidizing electric vehicles, and enhancing AI skills to strengthen workforce productivity while mitigating rising energy costs.
Source : Thailand slashes GDP forecast as 3.78tn baht budget pushes debt toward ceiling