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The latest collection of the public debt is 7.8 trillion baht.
Date Dec 12, 2020 at 11:07 AM
The latest collection of the 7.8 trillion baht public debt is still within 60% of GDP.
Ms. Jindarat Wiriyathaweekul, Deputy Director of the Public Debt Management Office (PDMO), public debt at the end of October 2020 amounted to 7.8 trillion baht, with a ratio of public debt to gross domestic product (GDP) of 49.53%. Which remains within the fiscal discipline of 60%, while the year 2000 has the highest debt / GDP ratio of 59.98% due to the country’s financial crisis.
Taking into account the share of general government debt, the Thai government has a low level of debt of 44.37%, especially compared to emerging economies and developing countries in Asia (emerging and developing Asia). Countries) with an average of 62.89% (IMF, 2020).
In addition, the proportion of Thailand is, on average, compared to ASEAN and developing countries. This is because most of the public debt comes from loans for investment expenses in the budget system. And ask for loans to invest in various economic and social development projects, which also translates into a growth in the country’s GDP.
At the same time, the international credit rating agencies, S&P Moody’s and Fitch, have maintained Thailand’s sovereign credit rating at BBB + and maintain Thailand’s outlook at that level. Stable (stable outlook) like Thailand Have a strong public finance sector as a result of careful fiscal management and strict fiscal discipline.
Ms Chindarat said that Thailand was also severely affected by the COVID-19 outbreak. Therefore, the government promulgated an Emergency Decree (Royal Decree) to address the expected economic and social impacts of the COVID-19 epidemic on 3 issues as follows:
1) The Royal Thai Army Law authorizes the Ministry of Finance to borrow 1 trillion baht.
2) The Royal Thai Police provides financial assistance to companies affected by COVID-19 in the amount of 500 billion baht.
3) the National Law of Economic and Monetary Stability of 400,000 million baht
Royal Decree 2) and 3) are economic aid and economic stabilization. It is not a loan to operate. Therefore, it is not counted as public debt, so it can be concluded that the government will have a direct debt burden of only 1 trillion baht, not 1.9 trillion baht, which the Ministry of Finance currently borrows 348,761. Million baht
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