Thailand: State preps THB300bn for new measures

  • The government looks set to prepare more than THB300bn worth of new measures to help reduce people’s expenses and stimulate domestic consumption battered by a fresh wave of Covid-19 infections.
  • According to a Finance Ministry source who requested anonymity, the government now has about THB380bn available to be allocated to remedy the impact of the pandemic, THB240bn of which is left over from the THB1tr loan decree while the remainder will come from the government’s fiscal expenditure budget.
  • In the event that the infections are prolonged, the source said additional borrowings in addition to the THB1tr loan decree are inevitable and the government itself is believed to be considering raising the ceiling of its fiscal sustainability framework, which caps public debt at 60% of GDP.
  • The source estimated at the end of fiscal 2021 or 30 Sep 21, Thailand’s public debt-to-GDP ratio would stand at 58.75%.
  • Thailand has managed to keep public debt to GDP below the sustainability framework ceiling for decades by providing fiscal policy space for the government to buffer against economic shocks.
  • The public debt level was around 40% of GDP before the pandemic emerged in early 2020.
  • A review of the government’s fiscal sustainability framework is conducted every three years and a review is due to take place in 2021.

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