Bangkok:Deputy Prime Minister and Minister of Finance, Ekniti Nitithanpraphas, has confirmed there will be no increase in Thailand's public debt ceiling beyond 70% of GDP. Speaking at The Standard Economic Forum 2026 Reinvent Thailand, Ekniti emphasized the government's commitment to fiscal discipline and reducing the deficit to below 3%.
According to Thai News Agency, Ekniti highlighted the importance of maintaining a strict fiscal discipline as a defense for the economic system. This approach has contributed to the reduction of the budget deficit from 4.4% to 3.4% of GDP in the past fiscal year, which in turn led to upgrades in Thailand's credit outlook from negative to stable by major rating agencies such as S and P Global Ratings, Moody's Ratings, and Fitch Ratings.
The government aims to reduce the public debt-to-GDP ratio from the current 67-68% while promoting investment in seven targeted industrial sectors. This fiscal discipline has helped maintain Thailand's interest rates lower than other countries, with a 10-year government bond yield of around 2%, comparable to Singapore's 2.3%. This stability aids in reducing borrowing costs and financial burdens on both the private sector and the public.
Ekniti also announced that the National Economic and Social Development Council (NESDC) is set to reveal KPIs and targets for the seven target industries under the "Reinvent Thailand" initiative. The initiative aims to increase the proportion of total public and private investment from 22% to 30% of GDP and elevate Thailand's competitiveness ranking to the top 20 globally.
The strategy also addresses economic inequality by lifting lower income brackets and attracting foreign direct investment. The Board of Investment (BOI) has shifted its strategy to focus on actual investment value, skills development, and integrating Thai entrepreneurs into global supply chains. This change has resulted in over 120,000 new skilled jobs and domestic supply chains worth over 600 billion baht since the beginning of the year. Recent investment growth in the third quarter exceeded 27%, driven by the Thailand Fast Pass program and increased global supply chain participation.