Fiscal Policy and Solving Household Debt Problems

Abstract

This academic article aims to present the household debt situation in Thailand, present fiscal policy and its implications for addressing household debt, and present government measures to address household debt within the system. The analysis reveals that household debt in Thailand has become increasingly severe, particularly among low- and middle-income groups. This is primarily due to economic factors such as insufficient income to cover the cost of living and job instability. Social and behavioral factors, such as consumerism, easy access to credit, and a lack of financial discipline, have resulted in a significant number of people falling into a cycle of chronic debt. Furthermore, fiscal policies focused on public welfare have negatively impacted long-term economic recovery, leading to increased consumption and decreased savings, resulting in a widening gap between savings and investment at the macro level. Along with this, the public lacks spending discipline, potentially leading to increased debt burdens. Therefore, addressing household debt is a key issue that the government should not overlook, addressing access to capital, reducing interest rates, and promoting financial discipline among the public.