The Thailand Development Research Institute (TDRI) is warning against raising the country’s public debt ceiling beyond 70% of GDP. They argue that without a solid plan, it could create financial instability.
The government is under pressure to increase spending, but critics say raising the debt limit is like maxing out a credit card and only paying the minimum. Some believe it could work if the money goes into long-term projects, but others think it’s just another short-term fix.
What do you guys think? Is this necessary, or will it just make things worse down the road?
Thorne said:
I get the need to stimulate the economy, but how do they plan to pay all this back? Feels like a cycle that never ends.
That’s the big issue. If they invest in things that actually boost the economy long-term, maybe it makes sense. But if it’s just for short-term stimulus, then what?
Finance Minister Pichai says raising the ceiling should be a last resort. But if banks and economists are supporting it, does that mean it’s inevitable?
Hadi said:
Finance Minister Pichai says raising the ceiling should be a last resort. But if banks and economists are supporting it, does that mean it’s inevitable?
Probably. Once the idea is out there and big players like SCBX and CIMB support it, it’s just a matter of time.
This all comes down to how they use the money. If they invest in real infrastructure or economic growth, fine. If they just hand out cash, then we’re in trouble.
Marin said:
This all comes down to how they use the money. If they invest in real infrastructure or economic growth, fine. If they just hand out cash, then we’re in trouble.
Yeah, it’s like taking out a loan for education vs. blowing it on a vacation. One pays off, the other just puts you deeper in debt.