Bangkok: Thawee Sodsong, a Member of Parliament from the Prachachart Party, has raised significant concerns regarding the Thai government's decision to take on a loan amounting to 1.26 trillion baht. Sodsong questioned the implications of this borrowing on the public and who it ultimately benefits.
According to Thai News Agency, the government in 2026 borrowed an additional 400 billion baht on top of an existing 860 billion baht, bringing the total to 1.26 trillion baht. This borrowing is intended to mitigate the effects of the energy crisis on citizens, farmers, and businesses, with a portion allocated to support renewable energy and skill development initiatives. However, Sodsong is worried about the impact of this debt on the Thai population and whether it truly serves the public's best interests.
The public debt at the end of the fiscal year 2025 was recorded at over 12 trillion baht and is projected to rise significantly by the end of 2026. This borrowing is within the government's authority through an emergency decree, which requires subsequent approval by the House of Representatives. Sodsong highlights the burden this places on the Thai people, given the high interest rates involved and the concentration of spending in specific sectors.
Sodsong outlines several issues with the current borrowing strategy, noting that much of the money is being used to cover budget deficits rather than to create new economic assets. The funds are often funneled into large infrastructure projects that benefit only a few large corporations, primarily in urban areas and economic zones. This approach, he argues, leads to spatial inequality and fails to support grassroots economic development.
The rapid increase in debt compared to economic growth is another concern. The government has been borrowing significantly more than the GDP growth it generates, leading to a fiscal imbalance. Sodsong also criticizes the inefficiency in managing borrowed funds, which often results in wasted interest expenses without corresponding economic benefits.
Sodsong argues for a more sustainable approach, suggesting that the government should prioritize reallocating existing budget funds rather than increasing borrowing. He emphasizes that public debt should be used to generate economic value and improve citizens' quality of life, rather than servicing debts to private concessionaires.
In conclusion, Sodsong calls for transparent governance and responsible fiscal management to ensure that the public debt does not become an undue burden on future generations. He urges the government to consider alternative strategies that prioritize public welfare and economic stability.