Government revenue and expenditure
The government of Thailand operates under a unitary state alongside a democratic system with a constitutional monarchy. The government of Thailand consists of three branches: the executive, the legislative, and the judiciary. The Thai Ministry of Finance, which is responsible for formulating and implementing financial policies, managing public finances, and ensuring fiscal discipline, oversees government finances. Each year, the government's budget is prepared and submitted to the National Assembly for approval. The Thai government's fiscal year begins in October and ends in September of the following year. Government expenditure is divided into several categories, including recurrent expenditure, development expenditure, and debt service. Recurrent expenditure covers the cost of running the government, while development expenditure is used for capital investment in infrastructure, education, health, and other sectors. Debt service refers to the repayment of loans and interest. Government spending as a proportion of the country’s GDP fluctuated in recent years. To stimulate the economy, the government rolled out multiple phases of a co-payment subsidy scheme called Kon La Kreung, in which over 26 million Thai citizens participated.
The current state of government debt
National debt in Thailand was forecast to amount to around 337 billion U.S. dollars by 2024. The Thai government manages its debt through the Public Debt Management Office (PDMO), which is responsible for issuing government bonds and managing the government's debt portfolio. The PDMO also monitors the debt-to-GDP ratio to ensure that the government's borrowing remains sustainable and does not exceed a predetermined limit. In 2023, the debt in relation to Thailand’s GDP is estimated to reach approximately 61 percent, which is not too high compared to debt in other ASEAN countries. Moreover, in the previous year, the government held a significant value of government liabilities, of which the majority was made up of debt securities. Government debt securities consisted of treasury bills, bonds, and promissory notes.