BANGKOK, 26 April 2011 – The Bank of Thailand (BoT) has expressed concerns over populist policies being adopted by political parties ahead of the general election, warning that they could bring indebtedness to the country.
In response to several political parties’ plans to shoulder people’s living expenses as part of their populist policies in hopes of garnering more votes in the upcoming election, BoT Governor Prasarn Trairatvorakul said the central bank was worried about the move as it could create a huge amount of debt and budget deficit. He warned that a failed policy could bring about long-lasting impacts on the nation; therefore, each party’s policy must be thought out carefully.
Mr Prasarn pointed out that most countries currently facing an economic crisis had problems with debt and financial instability. Even though Thailand’s public debt is now below 50 percent of the national gross domestic product (GDP), he stressed that the issue must not be overlooked.