Wed, October 27, 2021

business

Thailand hikes public debt-GDP ceiling to 70% to fund recovery


The State Fiscal Policy Committee on Monday approved raising Thailand’s public debt ceiling from 60 per cent to 70 per cent of GDP.

The new limit would be proposed at Tuesday’s Cabinet meeting for approval, said Finance Minister Arkhom Termpittayapaisith.

The committee, which is chaired by Prime Minister General Prayut Chan-o-cha, said it approved the hike in case the government needs to borrow more money in the medium term.

A Finance Ministry source said raising the debt ceiling would aid the government in setting its budget deficit for fiscal year 2022, which starts next month.

The government has so far borrowed 1.5 trillion baht to fund Covid-19 relief and stimulus programmes, 500 billion baht of which was approved this year. However, Bank of Thailand Governor Sethaput Suthiwartnarueput recently urged the government to borrow another 1 trillion baht to aid recovery from the pandemic.

The committee said Thailand’s fiscal position remains healthy with good debt-repayment capability.

Published : September 20, 2021