The cabinet acknowledged the latest report on public debt levels as of August, tallying 64% of GDP, below the fiscal sustainability threshold of 70%.
According to government spokesman Jirayu Houngsub, the Finance Ministry reported to the weekly cabinet meeting on Tuesday public debt at the end of August was 11.7 trillion baht, equivalent to 64.0% of GDP.
Under the public debt management framework, Mr Jirayu said the government set four key management criteria, and the public debt level remains within these limits.
First, the public debt-to-GDP ratio must not exceed 70%. Second, the government's debt burden as a percentage of projected annual revenue must not exceed 35%. As of the end of March, it is 19.0%.
Third, the proportion of public debt in foreign currency to total public debt must not exceed 10%. As of the end of March, it is 1.23%.
Finally, the ratio of public debt in foreign currency to export revenue from goods and services must not exceed 5%. As of the end of March, it is 0.05%.
The Public Debt Management Office (PDMO) recently confirmed the government's level of public debt is not yet a concern compared with countries that have a similar credit rating to Thailand.
Jindarat Viriyataveekul, public debt advisor for PDMO, said the government's public debt level remains within acceptable limits, even though the government borrowed an additional 145 billion baht for fiscal 2024 to fund the 10,000-baht handout programme for vulnerable groups.
According to Mrs Jindarat, for fiscal 2025 Thailand's public debt level is projected at 66-67% of GDP, including debt obligations arising from the government's cash handout.
However, the public debt level may be lower than this forecast if GDP growth exceeds expectations next year, she said.
In a related development, Mr Jirayu said the cabinet approved the expenditure budget for fiscal 2025, specifically the contingency fund for emergencies or necessities to implement projects to help farmers recover from flooding, with a total allocation of 2.55 billion baht for eight projects.
These projects include improving rice production efficiency for flood-affected farmers, controlling the outbreak of pests and diseases, supporting crop varieties and production factors to assist farmers affected by disasters in 2024/2025, machinery repair projects, and debt relief programmes for members of agricultural cooperatives.