Bangkok: The Stock Exchange of Thailand (SET) supports the government's borrowing and raising of the debt ceiling to revive the economy. The Chairman of SET, Professor Kitipong Urapipattanapong, emphasized the necessity for clear, transparent, and efficient spending, with a definite purpose, to support vulnerable groups.

According to Thai News Agency, Professor Kitipong revealed that the government's decision to issue an emergency loan decree and consider raising the public debt-to-GDP ratio from 70% is essential for economic recovery in the current vulnerable situation. He stressed the importance of transparency and efficiency in using these funds.

Professor Emeritus Kitipong highlighted the ongoing impact of the Middle East conflict and energy prices on the Thai economy, arguing that raising the debt ceiling to inject funds is crucial. He personally believes that not borrowing could negatively impact the country's recovery more than increasing debt.

"The crucial question is, if we don't borrow, where will we get the money to help vulnerable groups in need?" Professor Kitipong questioned. He stressed the importance of utilizing borrowed money for long-term economic restructuring, emphasizing human resource development, logistics improvement, and infrastructure projects like the dual-track railway system.

The Chairman also emphasized supporting SMEs by enabling small-scale entrepreneurs to enter the tax system via online platforms, aiming to provide them access to low-interest funding. Addressing concerns about fiscal discipline, Professor Kitipong stated that borrowing with clear objectives and measurable KPIs would enhance foreign investor confidence and positively impact credit ratings.

Additionally, he suggested that the government should use this opportunity for major national restructuring, focusing on increasing revenue to reduce future debt levels. This could involve tax restructuring, possibly increasing VAT, expanding the tax base using technology for a transparent tax system, and preparing for an aging society by establishing a retirement system.

"I believe that borrowing with a clear objective is definitely better than not borrowing at all," Professor Kitipong concluded, urging the government to demonstrate mechanisms to build confidence and devise a clear debt repayment plan through tax reform, aligning with the social structure and assisting vulnerable groups.