Thai Chamber of Commerce warns government to prepare reserves for unexpected crises, concerned that raising debt ceiling to 75% may prove difficult

The Thai Chamber of Commerce has warned the government to maintain financial reserves to prepare for unforeseen crises, expressing concerns that raising the debt ceiling to 75% would be extremely challenging if needed. Wisit Limlueechai, Vice Chairman of the Thai Chamber of Commerce, revealed details about the government's planned major economic stimulus measure 'Thailand Helps Thailand Plus' (the revised name for the 'Fifty-Fifty Plus' program), under which the government would contribute 60% and the public would contribute 40% to encourage consumer spending. He personally views the Fifty-Fifty Plus program as an effective measure for directly stimulating consumption, as it encourages people to spend more freely. However, more clarity is needed regarding the conditions and specifics from the government following formal Cabinet consideration. Regarding fiscal concerns, Wisit expressed confidence that the government can manage within the existing fiscal discipline framework. The current public debt-to-GDP ratio is approximately 66.6% of the 70% ceiling, leaving a remaining margin of about 4-5%, which represents hundreds of billions of baht still available for use. Additionally, the government could utilize budget savings from public sector cost reductions, such as eliminating unnecessary expenditures, canceling foreign study tours, and consolidating central budgets from various government agencies to allocate assistance to the public during this period of economic fragility and ongoing impacts from multiple factors. However, recognizing that government funds are limited, the government may need to carefully screen beneficiaries based on necessity, particularly vulnerable groups or those most severely affected. "The government must preserve reserves for unexpected situations in the future, because if we exhaust the funds up to the 70% debt ceiling and then face a compounded crisis, seeking Parliamentary approval to raise the ceiling to 75% would be extremely difficult," Wisit stated. Regarding Thailand's economic outlook for the second quarter, he expressed cautious optimism for growth from exports and tourism, particularly in electronics and high-value products that show expansion trends, while exports to the United States continue under the 10% tariff rate amid ongoing trade negotiations. Regarding the Middle East conflict situation, although it requires close monitoring, any de-escalation would help reduce pressure on commodity costs and transportation, especially for the agricultural and food sectors which can continue exporting, though domestic production costs remain elevated.