World

Thai government urged to improve efficiency of tax collection, public spending

The National Economic and Social Development Council (NESDC) has urged the Thai government to improve efficiency of government revenue collection and effectiveness of public spending as the country’s public debt is projected to reach 69.3% of gross domestic product (GDP) in 2029.

Illustrative photo (Photo: kasikornresearch.com)
Illustrative photo (Photo: kasikornresearch.com)

Bangkok (VNA) – The National Economic and Social Development Council (NESDC) has urged the Thai government to improve efficiency of government revenue collection and effectiveness of public spending as the country’s public debt is projected to reach 69.3% of gross domestic product (GDP) in 2029.

The council urged the government to strengthen its fiscal stability, especially by reducing the size of budget deficits.

The NESDC made the warning over the projected public debt which put the country at economic risk after the Thai cabinet approved the medium-term fiscal plan (2025-2029) of the State Fiscal and Financial Policy Committee.

The plan projected increasing the public debt-to-GDP ratio in the next five years, starting with 65.7% of GDP or 865.7 billion THB (24.88 billion USD) in 2025, 67.3% (860 billion THB) in 2026, 68.5% (758.6 billion THB) in 2027, 69.2% (721.9 billion THB) in 2028, and 69.3% (703.3 billion THB) in 2029.

The council noted that the projected public debt-to-GDP ratio was approaching 70%, which is the threshold for managing public debt under Section 50 of the State Fiscal and Financial Discipline Act of 2018.

The Thai government's revenue-to-GDP ratio remains below 15%, while the average budget expenditure-to-GDP ratio is still high. As a result, Thailand’s fiscal space will decrease and might not be sufficient to absorb economic risks, especially in a situation where global economic uncertainties remain high, it warned.

The NESDC said this could result in Thailand's economy growing lower than expected in the baseline scenario, leading to the public debt-to-GDP ratio exceeding the limit set by the State Fiscal and Financial Discipline Act.

Thus, the council said it is urgently necessary to strengthen the country’s fiscal stability, especially by prioritising the reduction of the overall budget deficit.

The council also suggested improving the efficiency of government revenue collection and the effectiveness of public spending, as well as the allocation of the government's debt repayment budget to align with the increasing debt and interest payments each fiscal year.

It is necessary to support long-term economic potential amid increasing complexity in future developments, including global economic volatility, climate change, and the transition to a super-aged society./.

VNA
#Thailand #NESDC #public debt #GDP #tax collection Thailand
Follow VietnamPlus

Post-pandemic recovery

Related News

See more

Two foreign tourists buy curry puffs at the popular Khun Phu shop in the Talat Noi community in Bangkok on Monday. (Photo: bangkokpost.com)

Thailand revises tourism strategy after earthquake

Minister of Tourism and Sports Sorawong Thienthong said that a tourism risk and crisis management team will be established to support the industry, with representatives from organisations in the tourism supply chain, such as the Ministry of Home Affairs and the Roads Authority.

General Khamtay Siphandone, former President of the Lao People’s Revolutionary Party (LPRP) Central Committee, former President of Laos and senior revolutionary of the LPRP. (Source: VNA)

Former Lao President Khamtay Siphanone passes away

General Khamtay Siphandone, former President of the Lao People’s Revolutionary Party (LPRP) Central Committee, former President of Laos and senior revolutionary of the LPRP, passed away at 10:30am on April 2 at the age of 102.

Rescue teams search for victims after the earthquake in Mandalay, Myanmar, on March 31, 2025. (Photo: Xinhua/VNA)

Myanmar earthquake: Relief efforts face major challenges

The 7.7-magnitude earthquake has caused widespread destruction in central Myanmar, displacing tens of thousands. The situation has been further complicated by ongoing conflicts, particularly in the Sagaing region, making it extremely difficult to deliver aid to affected areas.

At the explosion site (Photo: Facebook/Anwar Ibrahim)

Malaysia investigates gas pipeline explosion

The incident destroyed 78 houses and 10 shop lots, while also damaging 237 other houses and numerous vehicles. An estimated 364 people were affected, including 63 injured.

Prime Minister Paetongtarn Shinawatra listens to a briefing by a team of Israeli rescuers who are part of an international contingent working at the collapsed building site in Bangkok. (Photo: Bangkok Post)

Thailand works to restore global trust after Myanmar quake

Prime Minister Paetongtarn Shinawatra underscored Thailand's commitment to restoring its image and ensuring public confidence, noting that a thorough investigation into the project's approval, design and construction materials is underway.

Thailand speeds up investigation into Bangkok building collapse

Thailand speeds up investigation into Bangkok building collapse

The SAO building, valued at 2.1 billion THB (61.4 million USD), had been under construction for approximately five years and was nearing completion. It was the only building in Bangkok to collapse as a result of the powerful earthquake in Myanmar.

Delegates at the event (Photo: kpl.gov.la)

Laos aims for sustainable infrastructure development

Laos' Enabling Environment Roadmap for Infrastructure Asset Management (IAM EE) outlines strategies for the effective management of public infrastructure, including roads, schools, and hospitals, with a focus on resilience, inclusivity, and sustainability.

Strong earthquake strikes eastern Indonesia (Photo: scienceexchange.caltech.edu)

Strong earthquake strikes eastern Indonesia

A 6.0-magnitude earthquake occurred at 5:15 pm, with its epicenter located 93 km northeast of Indonesia's Maluku Barat Daya district and a hypocenter at a depth of 157 km beneath the seabed. No tsunami warning has been issued.

Rescue forces are racing against time to search for victims of the earthquake that hit Myanmar on March 28, 2025. (Photo: Xinhua/VNA)

Myanmar earthquake: Devastation’s full extend is not clear

Myanmar's state media quoted military government leader Senior General Min Aung Hlaing as saying the earthquake death toll had reached 2,065, with more than 3,900 injured and some 270 missing. Aid agencies forecast these numbers will rise significantly due to information blackouts in remote areas.

File - Passengers pass through the automatic immigration checkpoint (auto gate) at Terminal 3 of Soekarno-Hatta International Airport in Tangerang, Banten, Indonesia, January 3, 2024. (Photo: ANTARA)

Indonesia operates auto gates at Soekarno-Hatta International Airport

According to Johanes Fanny Satria Cahya Aprianto, head of the airport's immigration office, immigration services are fully prepared for the surge in passengers. Currently the office has deployed 531 personnel to ensure smooth and efficient immigration processing at the airport.