Thailand: Selected Issues

February 20, 2025--Summary
Summary A. Introduction
1. Thailand's debt ceiling plays a central role in safeguarding fiscal prudence. Thailand has a comprehensive set of fiscal rules to ensure fiscal responsibility and debt sustainability (Table 1). Among these, the public debt ceiling, stipulated in the 2018 Fiscal Responsibility Act (FRA), serves as a key anchor guiding fiscal policies.

The debt rule has a broad coverage of the public sector-encompassing debt of the general government, state-owned enterprises, government agencies, and guaranteed debt of the special financial institutions. The Fiscal Policy Committee (FPC) determines the level of the debt ceiling, which is currently set at 70 percent of GDP. The ceiling was raised from 60 percent of GDP in September 2021 to provide more space for COVID-19 related measures.