Thailand's Public Debt Stays Sustainable Amid Fiscal Strategy

[snoop1130]

 

In yesterday's Cabinet meeting, it was disclosed that Thailand's public debt remains within sustainable limits. As of August, the debt reached 11.7 trillion baht or 64% of the GDP, comfortably below the 70% fiscal sustainability benchmark. This reassures that the nation's economic strategies are on track.

 

Government spokesperson Jirayu Houngsub emphasised the Finance Ministry's strict adherence to the public debt management framework. This scheme involves four crucial criteria that help in maintaining debt levels manageable and predictable.

 

By the end of March, the government's debt was a mere 19% of projected annual revenue, safely under the 35% ceiling. Public debt in foreign currency was just 1.23% of the total public debt, against a 10% cap. Furthermore, foreign currency debt to export revenue ratio stood at a minimal 0.05%, underlining stable and secure financial management.

 

Jindarat Viriyataveekul from the Public Debt Management Office (PDMO) confirmed that Thailand's debt level is comparable to those of similar economies. Even with an additional 145 billion baht for fiscal 2024 to fund a handout programme, debt remains manageable. Future projections for fiscal 2025 predict debt levels at 66-67% of GDP, although these figures could improve with better-than-expected GDP growth.

 

Additionally, the Cabinet has approved a 2.55 billion baht contingency fund in the 2025 budget to aid farmers, especially those affected by recent flooding. This fund will bolster projects on rice production efficiency, pest and disease control, and crop support, as well as machinery repair and debt relief for agricultural cooperatives.

 

These financial measures and strategic spending showcase the government's proactive steps towards economic resilience, ensuring sustainable growth while providing vital support to affected communities.

 

File photo for reference only

 

-- 2024-11-06

 

 

[John Drake]

A budgetary statement with Chinese characteristics.