What To Know
- Bangkok Business News—The Fiscal Policy Office (FPO) has raised a red flag over an emerging fiscal crisis as public agencies are now carrying a staggering debt burden of more than 1 trillion baht under Section 28 of the State Financial and Fiscal Discipline Act.
- Importantly, the FPO points out that this debt mountain is not just a statistic—it could erode public service delivery, from infrastructure to welfare programmes, and diminish the government’s fiscal flexibility.
Bangkok Business News: State Agencies on Edge as Debt Skyrockets
Bangkok Business News—The Fiscal Policy Office (FPO) has raised a red flag over an emerging fiscal crisis as public agencies are now carrying a staggering debt burden of more than 1 trillion baht under Section 28 of the State Financial and Fiscal Discipline Act. The FPO warns this situation may jeopardize state operations if not handled with precision and caution.
There is literally no money left for many Thai state agencies
Image Credit: AI-Generated
In response, the FPO urges the government to tread carefully when tapping into emergency funds, advocating that such budget resources must only be deployed out of absolute necessity. This Bangkok Business News report reflects a growing concern that routine reliance on this fiscal backstop could undermine the ability of agencies to function effectively.
Hidden liabilities exacerbate fiscal stress
A closer look reveals that several state financial institutions shoulder a significant chunk of this off-budget debt, including major agricultural and savings banks along with other state enterprises. These obligations are largely concealed from the regular budget, making the fiscal health of Thailand’s public sector more fragile than previously thought.
What’s at stake for government operations
If state agencies continue to lean on Section 28 financing, there is a real risk that they could face liquidity squeezes or even operational disruptions. Importantly, the FPO points out that this debt mountain is not just a statistic—it could erode public service delivery, from infrastructure to welfare programmes, and diminish the government’s fiscal flexibility.
Pressure mounts on policymakers
With this debt looming over the fiscal landscape, the FPO’s alert is essentially a warning shot: extraordinary borrowing should be a last resort, not a workaround for structural budgeting issues. As Thailand edges toward higher debt ratios and tighter fiscal space, scrutinizing off-budget liabilities is becoming more urgent than ever.
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