BANGKOK - Thailand's government has capacity to borrow as much as 500 billion baht by October without needing to raise the statutory public debt ceiling, Finance Minister Ekniti Nitithanprapas said on Wednesday.
Speaking to reporters, Ekniti pointed to the strength of the country's capital and bond markets and available excess liquidity as adequate supports for government issuance. He framed the borrowing option as a necessary policy tool, saying: "If we do not borrow, it would be more dangerous for the economy because GDP would contract."
The planned borrowing has been under review. Ekniti had said on Monday the government was evaluating whether it still needed to issue the planned 500-billion-baht emergency borrowing decree.
On the country's fiscal metrics, Ekniti said Thailand's public debt-to-GDP ratio stands at about 66%, which leaves roughly four percentage points of room under the current 70% ceiling. He quantified that fiscal space as amounting to around 800 billion baht.
Inflation and growth projections used in preparing the 2027 fiscal budget were also outlined. Headline inflation is expected at 2.9% this year and 2.5% in 2027, while GDP growth is forecast at 1.4% in 2026 and 2.2% in 2027. The 2027 fiscal year begins in October, Ekniti said.
On Wednesday the government agreed to adhere to its previously approved 2027 fiscal budget plan. That plan projects a 0.2% increase in spending to 3.788 trillion baht ($118 billion) and anticipates an 8.4% reduction in the deficit to 788 billion baht, relative to the current fiscal year.
The current value-added tax rate of 7% will be retained for another year, Ekniti added.
Credit ratings agency Moody's revised Thailand's outlook to "stable" from "negative" on Tuesday, citing reduced downside risks after U.S. tariffs on Thai exports were lowered to levels in line with regional peers.
Exchange rate used in the official figures: $1 = 32.1500 baht.
Implications in brief
The minister's comments signal that Bangkok believes domestic market depth and liquidity can absorb near-term supply without immediate pressure on the debt ceiling, while the government maintains its fiscal stance for 2027 and keeps the existing VAT rate in place.