Thailand to raise public debt-to-GDP ceiling to accommodate more borrowing

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Miss Patricia said the plan forms the basis on which the country can borrow for economic development and so the committee can consider raising the debt-to-GDP ratio ceiling beyond the current 60%, if it finds such a move necessary in certain economic situations.

Thailand’s Public Debt Management Office (PDMO) has revealed that the government’s committee in charge of fiscal discipline has scheduled a meeting to draw up a five-year public debt management plan.

PDMO Director-General Patricia Mongkhonvanit said the plan forms the basis on which the country can borrow for economic development and so the committee can consider raising the debt-to-GDP ratio ceiling beyond the current 60%, if it finds such a move necessary in certain economic situations.



She said the government is not only focused on the current economic situation, but also on the next few years. If the country needs to borrow more and raises the public debt-to-GDP ratio beyond the ceiling, the government can raise the ceiling to accommodate the borrowing.


According to the PDMO, at the end of July, the debt-to-GDP ratio stood at 55.6%. It is expected to surge to 58% by the end of fiscal 2021 on September 30th. The PDMO has already borrowed 65 billion baht of the 123 billion fund for public health projects and relief measures, of which 34.2 billion has been disbursed.



Meanwhile, Fiscal Policy Office Director-General Kulaya Tantitemit said the government collected net revenue of 1.917 trillion baht during the first 10 months of fiscal 2021, short of the 10-month target by 216 billion baht. The shortfall was attributed to a weaker economy and tax measures to help people with the cost of living. (NNT)