Thailand’s public debt-to-GDP ratio is expected to reach 62.7% by the end of FY2022, below the current ceiling of 70% of GDP.
Deputy Finance Minister Santi Promphat reiterated that the government has optimally managed the financial situation of the nation, with various measures implemented to help people and especially vulnerable groups. He also said more policies would be revealed in due course.
Challenges due to the COVID-19 pandemic
The deputy minister stressed that the government was not on the verge of bankruptcy, but acknowledged that there have been challenges due to the current COVID-19 pandemic and other global factors.
Patricia Mongkhonvanit, director general of the Public Debt Management Office (PDMO), meanwhile said the country’s interest burden to estimated annual revenue ratio is expected to be 8 percent by the end of the year. fiscal year 2022.
The figure is expected to remain below 10% – the international standard for the ratio – for the next five years.
Thailand must continue its expansionary fiscal policy
Patricia said Thailand should pursue an expansionary fiscal policy to support economic growth. She added that between 2015 and 2021, the government had invested more than 2.6 trillion baht in 178 megaprojects spanning transport, utilities and energy.
The Managing Director noted that the PDMO has drawn up the Public Debt Management Plan 2022-2026 to meet the government’s planned spending of an additional 840 billion baht on mega-projects for this period.
Information and source
- Reporter: Na-ark Rojanasuvan
- Rewriter: Paul Rujopakarn
- National News Office: http://thainews.prd.go.th