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Recommend reducing government officials, reducing expenses, balancing the budget
Date September 25, 2020 at 15:26
NESDB Warns 3 Credit Crises Suggest to Government to Reduce Employment of Government Officials Accelerates Balance. Before the tax situation had a problem
Mr. Danucha Pichayanan, Deputy Secretary General of the National Council for Economic and Social Development (NESDB) or NESDB, revealed that Thailand now faces 3 types of debt problems, solving the country’s public debt. Business sector debt Entrepreneurship SME debt and family debt
In terms of debt, Thailand’s public debt in July 2020 stood at 47% of GDP, up from 41% at the beginning of the year due to the unusual situation in the country. There is a need for a loan to heal people in many places. But overall, the country’s public debt remains within the fiscal discipline of no more than 60% of GDP, which is still manageable. It is estimated that even with a 1 trillion baht loan under the Civil Emergency Borrowing Law, the ratio of the country’s public debt to GDP is 57%.
In the case of public debt, it is about borrowing to compensate for the deficit. Having to borrow money throughout the year 2.5-5 billion baht, that the government should try to create a balanced budget within 5-6 years will not be able to make a deficit budget continuously.
At the same time, there are still debts derived from the semi-fiscal policy. Helping people through state mechanisms, such as state banks, helping them first and then the government sets compensation payments. Semi-fiscal policy can only be done for a time. And some projects just can’t do much because they will affect the fiscal status. Until I can make the investment budget go down
In addition, public debt arises from borrowers to invest in the country’s infrastructure. That averaged 3-5 billion baht per year, with this part of debt not a concern. Because it is an investment that generates returns
“If you want to reduce the budget deficit AND move towards that balance, the government must start by restructuring the bureaucracy. Being a large system according to budget, with regular expenses of up to 80%, it is considered too high, today we have technology to use it The government must begin today to adjust the bureaucratic structure. Reduce this part of the budget To have more investment budget It will help reduce the deficit In addition to having to collect additional income, “said Danucha.
Debt of the corporate sector From the data it was discovered that Since the beginning of last year Corporate loans grew by 36.5% compared to the same period last year. As a result of some relaxation measures such as interest rates. While SME operators have reduced access to credit since 2019, although the government has introduced various credit measures while the Bank of Thailand (BOT) has done Low Interest Loan Project (Soft Lone) with a credit line of 500 billion baht, but only one hundred billion baht has been approved. Simplified loans Debt repayment can be done more efficiently.
While household debt To be watched closely Currently, Thai household debt is 80% of GDP, and most debt structures are long-term, such as only 33-34% of household debt, and 27% of them are personal debts. Consumer debt This is compared to many countries that are mostly long-term debt. As a result, Thailand must pay close attention to consumer debt. Because this debt can cause problems for the economy in the future. By going down to look in detail It was found that most of the people owed it faster, they graduated between the ages of 22 and 40 with a high debt So you may have to go back and see if The debt situation that is produced Caused by the person or the system
“The impact of the public debt problem is when the country’s debt increases. The growth of the national economy will slow. Despite the efforts to maintain economic growth But if the debt exceeds the limit that the country can handle Inevitably, the rate of economic growth will decrease. But Thailand’s public debt is still at a manageable level. The economy can still move, “Danucha said.
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