Pichai: Now is not the time to raise public debt ceiling

Finance Minister Pichai Chunhavajira says raising the public debt ceiling is not yet necessary, stressing it would be a last resort. He emphasised improving budget management and tax collection as priorities before considering any increase in debt levels.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira said on Monday that it is not yet the right time for the government to raise the public debt ceiling above 70%, stating that it would be the last resort of his government.

Pichai was responding to a previous comment by Arthid Nanthawithaya, CEO and chairman of Siam Commercial Bank, who called on the government to temporarily raise the public debt ceiling above 70% to address the economic downturn.

Pichai explained that while he would like to see the public debt ceiling increased, the current limit leaves little room for the Finance Ministry to manage the national budget effectively.

However, Pichai added that increasing the ceiling would enable the government to take on more loans.Before considering a rise in the public debt ceiling, Pichai emphasised that the government should first review how the current budget is being spent and whether there is potential to improve budget efficiency.

Moreover, he said the government should assess whether tax collection is being carried out efficiently and thoroughly.

Pichai reiterated that raising the public debt ceiling would be a last option, only considered after the government has exhausted all other measures to combat the economic slump.

"If we improve budget management and tax collection, and the economy improves, we won’t need to raise the public debt ceiling," Pichai concluded.

(2025/02/10-00:00)