BANGKOK, Thailand – Deputy Prime Minister and Minister of Finance, Pichai Chunhavajira, on September 18, revealed Thailand’s public debt management plan for the 2025 fiscal year. The government plans to borrow THB 1.05 trillion to cover deficits and restructure debt, pushing the country’s public debt to an estimated 66% of GDP, up from the current 63%. This plan is part of the medium-term debt management strategy for 2024-2027.
Of the new borrowing, THB 865 billion will be used to cover budget deficits, while THB 279 billion will be allocated for debt restructuring. Additionally, there will be a roll-over of THB 1.52 trillion, which includes debt restructuring of THB 1.24 trillion, issuing T-bills worth THB 520 billion, and issuing savings bonds of THB 124 billion. The plan is based on a projected GDP growth of 3% for the coming year.
Pichai emphasized that public debt is expected to stabilize in the 2026 fiscal year and begin to decrease in 2027. He also noted that Thailand faces few risks in managing its debt, with low levels of foreign borrowing reducing concerns over exchange rates, and discussions underway on balancing floating and fixed interest rates to mitigate interest rate risk.
He expressed optimism about Thailand’s economic outlook, expecting the country’s credit rating to be upgraded from BBB+ to A-. “Thailand’s economy is improving, and I believe the credit rating agencies, which are currently gathering information, will recognize this progress,” said Pichai. He noted that political instability, while noisy, is not unique to Thailand.
Addressing the issue of household debt, Pichai urged patience, acknowledging the complexity of the issue and emphasizing the need for a cautious approach to avoid disrupting financial discipline. The government is working on comprehensive strategies to manage the large volume of household debt without compromising economic stability.
