Bangkok: "Weera" has issued a warning to the government, urging the cessation of quasi-fiscal policies facilitated through specialized financial institutions, as the nation is currently burdened with a staggering 1 trillion baht in debt. He raised concerns over the profitability of many state enterprises that continue to request additional budgets despite their financial success.
According to Thai News Agency, Mr. Weera Thiraphattranon, a member of the Special Committee on State Enterprises' Budget for the fiscal year 2026, highlighted that the budget document, specifically Section 29, reveals 21 state enterprises seeking a combined budget of 79.298 billion baht. In contrast, the total expenses of these state enterprises amount to 143 billion baht. Weera expressed his apprehension about some state enterprises with either no income or expenses surpassing their revenue, citing examples like the BMTA and the State Railway of Thailand, which are significantly in debt.
Weera called for decisive actions from those managing these enterprises, suggesting privatization as a viable option to mitigate future fiscal burdens. He pointed to Thai Airways International Public Company Limited as a successful case of rehabilitation without becoming a budgetary burden, as the government retains a 40% stake but no longer classifies it as a state enterprise.
Concerns were also raised regarding specialized financial institutions such as the Bank for Agriculture and Agricultural Cooperatives (BAAC), the Government Savings Bank, the Small and Medium Enterprise Credit Guarantee Corporation (TCG), the Small and Medium Enterprise Development Bank of Thailand, and three other state-owned enterprises: the Mass Rapid Transit Authority of Thailand (MRTA), the Expressway Authority of Thailand, and the National Telecommunications Public Company Limited.
The budget requests include significant figures: BAAC at 20.203 billion baht, TCG at 8.834 billion baht, the Government Savings Bank at 1.517 billion baht, and the Small and Medium Enterprise Development Bank of Thailand at 278 million baht. Weera questioned the necessity of these allocations, given the profitable operations and liquidity of these institutions. He criticized the current budget practices, accusing the government of using deceptive methods in budget preparation to mask the use of off-budget funds via quasi-fiscal policies.
Further, Weera noted that both the MRTA and the Expressway Authority of Thailand, despite being profitable, have received similar budget allocations and should not continue this practice. He disclosed a recent government agreement to allocate 47 billion baht to the BAAC for farmer reserve funds, highlighting the additional burdens this places on BAAC under Section 28 in compliance with government policy. The government currently holds a remaining budget of 900 billion baht.
Weera described the situation as "shocking," pointing to a looming crisis concerning off-budget items under quasi-fiscal policies, with an outstanding balance of 1.077 trillion baht. He emphatically called for the termination of these policies, particularly involving the BAAC, the Government Savings Bank, and the SME Bank.
Weera concluded with a cautionary note about the escalating budget expenditures related to state enterprises, projecting a rise from 420 billion baht this year to 590 billion baht next year. He warned that government debt repayment, currently set at 360 billion baht, is expected to surge to 510 billion baht by 2027-2029 if off-budget management is not addressed seriously.