snoop1130 Posted May 6 Share Posted May 6 The government's financial burden, displayed as the percentage of interest to its expected revenue, is predicted to increase from the current 8% to 11% next year. This jump is largely due to the introduction of the government's main digital wallet giveaway program. A confidential individual from the Finance Ministry has stated that the existing 8% rate is consistent with an A rating according to international credit rating agency standards. A leap to 11% would lead to a drop to BBB+ credit rating, matching the nation's present sovereign credit rating. In 2019, the government's debt-to-revenue ratio was a manageable 6%, thanks to the efficient management of borrowing costs by the Public Debt Management Office. However, the pandemic in 2020-2021 caused a sudden change. The government approved two emergency decrees allowing borrowing up to 1.5 trillion baht to alleviate the financial effects of the pandemic. This decision pushed the ratio to a risky 8%, just under the 10% limit set by the government management framework. The government plans to finance its digital wallet project, estimated to cost 500 billion baht, with funds from the fiscal budgets of 2024 and 2025. This includes funds from Section 28 of the State Fiscal and Financial Discipline Act. Additionally, the government has decided to increase the budget deficit for the fiscal year 2025 by 152 billion baht. This move will require more state borrowing to offset the deficit, totaling 865 billion baht or 4.42% of the GDP. This would increase the government’s financial burden from 8% to 11% in 2025, as per the source. Regardless of these numbers, the government’s public debt management is believed to be within the financial discipline framework. The State Fiscal and Financial Discipline Committee, chaired by Prime Minister Srettha Thavasin, has stated that the government's debt-to-revenue ratio should not exceed 35%. As of September last year, this ratio was at 26%. In addition, the percentage of debt in foreign currency compared to total public debt should not be more than 10%. As of September last year, it was only 1.4%. Similarly, the ratio of foreign currency debt to revenue from exports of goods and services should not exceed 5%. It was a mere 0.05% as of last September. As of February this year, the total public debt was at 11.3 trillion baht, equal to 62.5% of the GDP. An updated medium-term fiscal plan released in January showed that the government's debt repayment budget compared to the expenditure budget has increased annually. It was at 10.5% for the fiscal year 2023, 11.0% for the fiscal year 2024, and is likely to steadily rise to 13.3% by 2028. File photo for reference only. Courtesy of Google -- 2024-05-06 Get our Daily Newsletter - Click HERE to subscribe 1 1 Link to comment Share on other sites More sharing options...
Popular Post ozz1 Posted May 6 Popular Post Share Posted May 6 That's if still goes ahead and don't forget they will make 7 percent on all purchases if it does happen time to drain the gold reserves or cut the military budget we know that's not going to happen 1 1 1 Link to comment Share on other sites More sharing options...
Ben Zioner Posted May 6 Share Posted May 6 2 hours ago, ozz1 said: That's if still goes ahead and don't forget they will make 7 percent on all purchases if it does happen time to drain the gold reserves or cut the military budget we know that's not going to happen Time to tax foreign pensions.. 1 1 Link to comment Share on other sites More sharing options...
ikke1959 Posted May 6 Share Posted May 6 They should call off the whole idea of the digital wallet 10k.. It is too expensive and it will harm more than do good.. I think that people with in income of 45k or 400k in an bankaccount don't need it, but the poor, elderly and disabled would be better of if they got some money. It would be much cheaper and also to use the money to increas the daily wage from 350 THB to 500 THB.. That would do much more good to the economy than 10k spending in a radius around your house and if for groceries it has no benefit at all..Only the shopkeepers of 7/11, Lotus's or CJ or whatever..Don't borrow money to pay off loans, as it will not work 1 Link to comment Share on other sites More sharing options...
Popular Post hotchilli Posted May 6 Popular Post Share Posted May 6 8 hours ago, ikke1959 said: They should call off the whole idea of the digital wallet 10k.. It is too expensive and it will harm more than do good.. I think that people with in income of 45k or 400k in an bankaccount don't need it, but the poor, elderly and disabled would be better of if they got some money. It would be much cheaper and also to use the money to increas the daily wage from 350 THB to 500 THB.. That would do much more good to the economy than 10k spending in a radius around your house and if for groceries it has no benefit at all..Only the shopkeepers of 7/11, Lotus's or CJ or whatever..Don't borrow money to pay off loans, as it will not work The elites used this digital wallet as a vote buying scam, let them fund it... combined they have more than enough resources. 1 2 Link to comment Share on other sites More sharing options...
Popular Post 2baht Posted May 6 Popular Post Share Posted May 6 5 minutes ago, hotchilli said: The elites used this digital wallet as a vote buying scam, let them fund it... combined they have more than enough resources. Unfortunately they are takers, not givers! 1 3 Link to comment Share on other sites More sharing options...
Popular Post Thingamabob Posted May 7 Popular Post Share Posted May 7 The 'giveaway' promise was a bribe to attract votes. It will use government funds, ie tax-sourced money, to enable its' implementation. Utterly ridiculous, shameful even, if anyone cares to seriously think about it. 2 1 Link to comment Share on other sites More sharing options...
RandolphGB Posted May 7 Share Posted May 7 This was nothing but a bribe to get votes. It will bankrupt the country. Typical Taksin. 1 1 Link to comment Share on other sites More sharing options...
brianthainess Posted May 7 Share Posted May 7 Thailand is broke, and needs to borrow money. . . . Link to comment Share on other sites More sharing options...
Popular Post kingstonkid Posted May 7 Popular Post Share Posted May 7 10 hours ago, ikke1959 said: They should call off the whole idea of the digital wallet 10k.. It is too expensive and it will harm more than do good.. I think that people with in income of 45k or 400k in an bankaccount don't need it, but the poor, elderly and disabled would be better of if they got some money. It would be much cheaper and also to use the money to increas the daily wage from 350 THB to 500 THB.. That would do much more good to the economy than 10k spending in a radius around your house and if for groceries it has no benefit at all..Only the shopkeepers of 7/11, Lotus's or CJ or whatever..Don't borrow money to pay off loans, as it will not work Thaksin's challenge is that if he does not do it, they will be facing a very, very hard charging MFP. Consider that the PTP has made promises every election and none of them have helped people remember tablet for every student rice pledge triple thai farmers' income economic growth 20 million highly skilled workers 20,000 baht guaranteed salary to all university grads free healthcare for all including bedridden patients improve the country's financial situation higher minimum wage amending the constitution How are they doing so far? 1 1 1 Link to comment Share on other sites More sharing options...
newbee2022 Posted May 7 Share Posted May 7 16 hours ago, snoop1130 said: Regardless of these numbers, the government’s public debt management is believed to be within the financial discipline framework. Belief is everything in Thailand 🙏 Link to comment Share on other sites More sharing options...
2baht Posted May 7 Share Posted May 7 28 minutes ago, newbee2022 said: Belief is everything in Thailand 🙏 Belief or BS? Link to comment Share on other sites More sharing options...
ikke1959 Posted May 7 Share Posted May 7 1 hour ago, 2baht said: Belief or BS? 1 hour ago, 2baht said: Belief or BS? Is that not the same?? 1 Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now