Gov’t says rising public debt justified

[Thaivisa News]

Bangkok: – Thailand’s public debt has risen to 5.6 trillion baht since January and this is well spent on investment outlays, said government deputy spokesman Sansern Kaewkamnerd.

Sansern said the borrowing has increased by 34 billion baht. The debt level is at 46 per cent of GDP, well below the 60 per cent cap for debt-financing projects.

He said Japan has the debt/GDP level of 200 per cent, followed by Singapore (more than 100 per cent), German (80 per cent) and United States (60 per cent).

The increase in public debt can be attributed to three main reasons, the deputy spokesman said.

First, the government borrowed 42 billion baht for advance refinance of the loans due in May.

Second, the 17 billion debts were meant to offset the budget deficit.

Third, the 1.9 billion baht loans were destined to finance water-management schemes and the rail and mass transit transportation networks.

This year, the government plans to incur the public debt worth 57 billion baht out of the pre-approved amount of 80 billion baht, said Theeraj Athanavanich, deputy director-general of Public Debt Management Office.

The Cabinet is expected next week to debate detailed borrowing plans for this year, Theeraj said.

The plans would cover the financing of water management projects worth 23 billion baht and of road repairs worth 34 billion baht.

Should the government give the green light to the plans, the actual borrowing would commence next month or May at the latest.

The first batch of loans should be amounted to 10 billion baht. The ratio of foreign and domestic borrowings would later be determined.

The government borrowing and spending for this year and the next will focus on revitalising the economy.

[Costas2008]

I wouldn't like to challenge the governments figures and justification of public debt.

What I would like to challenge is their inability to educate the people about the private debt that is soaring for the last years.

Millions of Thais are suffering from heavy borrowing from banks or loan sharks.

This has brought stress to them and even lead to suicides.

Unfortunately, between poor and uneducated people there is no sense of financial responsibilities.

They live for today and forget about tomorrow.

But this is where the responsibility of a caring government comes in, to make aware and educate these people of the dangers they are facing.

I hope something will happen as I don't foresee a bright future for many Thais.

[PatOngo]

I wouldn't like to challenge the governments figures and justification of public debt.

What I would like to challenge is their inability to educate the people about the private debt that is soaring for the last years.

Millions of Thais are suffering from heavy borrowing from banks or loan sharks.

This has brought stress to them and even lead to suicides.

Unfortunately, between poor and uneducated people there is no sense of financial responsibilities.

They live for today and forget about tomorrow.

But this is where the responsibility of a caring government comes in, to make aware and educate these people of the dangers they are facing.

I hope something will happen as I don't foresee a bright future for many Thais.

This is why international surveys show they are the happiest people on earth.

[shirtless]

Like most Governments in the world today simply spend more than they earn, At some point the credit will stop .

[trogers]

I wouldn't like to challenge the governments figures and justification of public debt.

What I would like to challenge is their inability to educate the people about the private debt that is soaring for the last years.

Millions of Thais are suffering from heavy borrowing from banks or loan sharks.

This has brought stress to them and even lead to suicides.

Unfortunately, between poor and uneducated people there is no sense of financial responsibilities.

They live for today and forget about tomorrow.

But this is where the responsibility of a caring government comes in, to make aware and educate these people of the dangers they are facing.

I hope something will happen as I don't foresee a bright future for many Thais.

How about a govt who not only did not educate it's citizens on the danger of debts, but actually issued taxpayer's money to it's citizens as unsecured debts?

[maidee]

oh its ok to spend

he forgot he mentionned western countries where most people pay taxes ... way to much taxes

[Robby nz]

I wouldn't like to challenge the governments figures and justification of public debt.

What I would like to challenge is their inability to educate the people about the private debt that is soaring for the last years.

Millions of Thais are suffering from heavy borrowing from banks or loan sharks.

This has brought stress to them and even lead to suicides.

Unfortunately, between poor and uneducated people there is no sense of financial responsibilities.

They live for today and forget about tomorrow.

But this is where the responsibility of a caring government comes in, to make aware and educate these people of the dangers they are facing.

I hope something will happen as I don't foresee a bright future for many Thais.

This is about public debt Costas.

What you are on about is private debt, completely different things.

Both however are largely inherited, coupled with the need for public spending to push the economy in a time of global economic downturn.

I do note that there is no mention of the borrowing needed to pay for the losses incurred by the rice pledging scheme, including that which was needed to pay the farmers what was owed to them when the previous administration forgot to make provision to pay them.

[Srikcir]

When you have a military organization, whose existence is owed to sucking the nipple of a nation's treasury, determining that nation's debt policies, you will not get economic responsibility. How then can the military expect anything better from Thais over management of their household debt?

[trogers]

When you have a military organization, whose existence is owed to sucking the nipple of a nation's treasury, determining that nation's debt policies, you will not get economic responsibility. How then can the military expect anything better from Thais over management of their household debt?

So far, this military government has displayed more economic responsibility than the previous elected government.

How many trillion baht worth?

Edited March 14, 2015 by trogers

[tubby johnson]

A sizeable chunk of Thailand's public debt is hidden off the books. This saves face.

[trogers]

A sizeable chunk of Thailand's public debt is hidden off the books. This saves face.

Yes, been hidden since Thaksin govt 1.

[Baerboxer]

When you have a military organization, whose existence is owed to sucking the nipple of a nation's treasury, determining that nation's debt policies, you will not get economic responsibility. How then can the military expect anything better from Thais over management of their household debt?

And do you suggest the Shin's were exercised economic responsibility? Hard to tell with public debt as they made so much information state secrets and admitting lying when giving out figures.

As for private debt. Well, their family vast fortune increased by a whopping 450% during the PTP period of government so I guess their household debt ain't much of a problem

Edited March 14, 2015 by Baerboxer

[worgeordie]

Why can Governments not manage their budgets like responsible households

have to (although few and far between I now suspect),Governments are supposed

to guide and be a good example to their populations.but debit seems to be the norm

for so many around the World.

Plus everything they do is geared towards those in debit,low interest rates,easy credit,

while people who are responsible and try and save a few bob,or who have a bit in the

bank and need the interest to supplement their pensions,are offered the shit end of the

stick.

regards Worgeordie, debit free, quite unusual for a Geordie,where the mantra seems to

be "let them worry,that's owed it.

[trogers]

Why can Governments not manage their budgets like responsible households

have to (although few and far between I now suspect),Governments are supposed

to guide and be a good example to their populations.but debit seems to be the norm

for so many around the World.

Plus everything they do is geared towards those in debit,low interest rates,easy credit,

while people who are responsible and try and save a few bob,or who have a bit in the

bank and need the interest to supplement their pensions,are offered the shit end of the

stick.

regards Worgeordie, debit free, quite unusual for a Geordie,where the mantra seems to

be "let them worry,that's owed it.

Welcome to Democracy, a govt of the people, by the people, and for the people. And the mass say, give me credit.

[rubl]

When you have a military organization, whose existence is owed to sucking the nipple of a nation's treasury, determining that nation's debt policies, you will not get economic responsibility. How then can the military expect anything better from Thais over management of their household debt?

Well, since you frequently complain about the state of the economy and lack of stimulation plans and/or their delayed execution, you should wonder how the current government is to pay for that?

Are you going to donate a few billion?

[Daniel Ingalls]

Don't ask the US for money.............We are definitely broke!

[trogers]

Don't ask the US for money.............We are definitely broke!

Cannot be. Have another round of QE and the dollar would go up again.

[farangmick]

And what percentage of the billions for water management schemes and filling in potholes on the roads will end up in already deep pockets?

[angiolo]

deep potholes and deep pockets

[MW72]

Don't ask the US for money.............We are definitely broke!

Cannot be. Have another round of QE and the dollar would go up again.

This is the crazy thing. The US is printing billions of dollars every month (as did the UK and EU with their own currencies). Money coming into existence out of thin air and yet the dollar is getting stronger? I'm no expert but where is the inflation? Where is the devaluation of the dollar? Something has got to give some day and I don't think it will be pretty when it does.

[tbthailand]

When you have a military organization, whose existence is owed to sucking the nipple of a nation's treasury, determining that nation's debt policies, you will not get economic responsibility. How then can the military expect anything better from Thais over management of their household debt?

So far, this military government has displayed more economic responsibility than the previous elected government.

How many trillion baht worth?

... ????

they started their reign in May by plagarizing every single major policy of the government they overthrew. They just struck the word 'populist policy' from their vocabulary....

[djjamie]

I wouldn't like to challenge the governments figures and justification of public debt.

What I would like to challenge is their inability to educate the people about the private debt that is soaring for the last years.

Millions of Thais are suffering from heavy borrowing from banks or loan sharks.

This has brought stress to them and even lead to suicides.

Unfortunately, between poor and uneducated people there is no sense of financial responsibilities.

They live for today and forget about tomorrow.

But this is where the responsibility of a caring government comes in, to make aware and educate these people of the dangers they are facing.

I hope something will happen as I don't foresee a bright future for many Thais.

Agreed. It started a few years ago though.

Private debt went up almost 100% from 2002 to 2004. It significantly increased from 68,405 Baht in 2000 (before TRT came to power) to 110,133 Baht in the first quarter of 2004.

This is completely attributed to the one village fund and the lack of foresight by the government at the time in its push to garner votes. Surprise surprise...

Lets hope the current government can suppress the rising public debt inversely proportional to the ex governments acceleration of the private debt.

Edited March 14, 2015 by djjamie

[FangFerang]

The headline should have been "banks and loan sharks tell government to say debts are justified"

So, the anti-corruption government says, "no problem".

[trogers]

Don't ask the US for money.............We are definitely broke!

Cannot be. Have another round of QE and the dollar would go up again.

This is the crazy thing. The US is printing billions of dollars every month (as did the UK and EU with their own currencies). Money coming into existence out of thin air and yet the dollar is getting stronger? I'm no expert but where is the inflation? Where is the devaluation of the dollar? Something has got to give some day and I don't think it will be pretty when it does.

And this is why I have cashed out since 2007 and buy assets in this region.

[harryfrompattaya]

A sizeable chunk of Thailand's public debt is hidden off the books. This saves face.

I guess you have a high post in the Thai Government I hope you do lose your job

[MisterBig]

I wouldn't like to challenge the governments figures and justification of public debt.

What I would like to challenge is their inability to educate the people about the private debt that is soaring for the last years.

Millions of Thais are suffering from heavy borrowing from banks or loan sharks.

This has brought stress to them and even lead to suicides.

Unfortunately, between poor and uneducated people there is no sense of financial responsibilities.

They live for today and forget about tomorrow.

But this is where the responsibility of a caring government comes in, to make aware and educate these people of the dangers they are facing.

I hope something will happen as I don't foresee a bright future for many Thais.

Judging by your posts you're Greek, if so -

I'm not sure if economics is a field in which any Greeks should venture at this moment in time.

[mommysboy]

Public debt is very low. Private debt is a problem.

[EyesWideOpen]

When you have a military organization, whose existence is owed to sucking the nipple of a nation's treasury, determining that nation's debt policies, you will not get economic responsibility. How then can the military expect anything better from Thais over management of their household debt?

Good point. It would be a bit like the US government military being able to

decide how much money they wanted to spend on projects, with no civilian

oversight. That certainly would not end well..... :-)

[jerojero]

Of course it's justified. Everyone knows that military leaders study extensively macroeconomic theory and finance. Generals are experts in the workings of the economy and know what's best for the country's economic future.

[jerojero]

Public debt is very low. Private debt is a problem.

Who is paying for the many mega projects? Private investors where there's no return in investment?.... think not. Public debt can be defined in many ways, and further reported any which way. Nobody really knows what the country's finances are right now...