BANGKOK, THAILAND – Finance Minister Ekniti Nitithanprapas warned that Thailand might be forced into heavy new borrowing as global crises and surging prices strained the economy.
Government prepares for emergency
The minister described an increasingly uncertain global situation, with the war in the Middle East weighing heavily on the country. He cautioned that fresh loans would be the last resort if existing funds proved insufficient.
Thailand’s public debt currently stood at 66 percent of economic output. The law so far allowed a maximum of 70 percent, but this ceiling could soon be removed.
Spending squeeze on civil service
The government first aimed to cut costs within the state apparatus and reclaim unused funds. Agencies that had not yet spent their annual budgets were required to report these amounts by 30 April.
Any office that delayed risked losing its remaining budget to a central emergency fund. This pool was intended to flow directly to people who suffered most from the crisis.
Ban on costly official trips
The minister demanded strict discipline from all ministries and departments. Unnecessary expenses such as overseas study trips or new showcase government buildings were cancelled with immediate effect.
Instead of constructing new offices, the state was to rent space to save cash in the short term. Every baht was to be preserved for the survival of the economy and for social assistance.
Multi‑billion loan as last resort
If the economy weakened further, the government planned what was described as a major legislative step. An emergency loan of up to 500 billion baht was under consideration to prevent a severe downturn.
Without this fresh funding, the entire economy could contract, hitting millions of Thais hard. The minister likened the strategy to stockpiling ammunition for a long fight.
Fears over oil prices
Energy costs in particular caused deep concern among experts in Bangkok. Even if weapons fell silent in the Middle East, petrol and electricity could remain expensive.
The country expected only weak growth in the coming year. Inflation was eroding citizens’ savings while the government searched for new responses.