Thailand's Fiscal Buffers Strong, No Welfare Cuts Like France

The Finance Ministry insists Thailand's fiscal situation differs from France, where protests have erupted over economic problems, budget deficits, and high public debt, raising questions about whether a similar scenario could happen in Thailand. Permanent Secretary Lavaron Sangsnit outlined the country's fiscal stability and the government's budget management approach. He said Thailand currently has high fiscal buffers and the government places great importance on strict financial discipline, a priority for Deputy Prime Minister and Finance Minister Pichai Chunhavajira. While foreign impacts have come from cutting public welfare budgets or reducing service quality, Thailand maintains its welfare and public care spending at the same level, focusing instead on controlling leakage and cutting unnecessary expenditures. Lavaron added that Thailand's fiscal strength continues to be endorsed by three global credit rating agencies, which have expressed confidence in the economy and fiscal status, recognizing Thailand's long-standing financial discipline and leading to upgraded credit ratings. 'The accumulated debt problem has built up over a long time and takes time to manage, but the government emphasizes the principle of not taking on new debt unnecessarily. If borrowing is necessary, the key is not the borrowing itself but ensuring the funds are used for projects that truly benefit the country and are efficient,' he said. Regarding the household rooftop solar panel project, a sub-committee has been reviewing details continuously for three to four days and will hold additional meetings to prepare for submission to the Cabinet, focusing on interconnected projects such as smart systems to expand benefits and enhance mutual efficiency. The matter has already passed sub-committee review two to three times to scrutinize details thoroughly and build public confidence. Asked if the proposal could reach the Cabinet this month, the Permanent Secretary said it likely would. On the progress of electric vehicle tax measures that would raise taxes on imported EVs, he said the issue is currently being prepared for submission through the next procedural steps, and everything must await clarity from the Deputy Prime Minister and Finance Minister for a final decision.