21 Sep 2021
Thai Economy
The State Monetary and Fiscal Policy Committee approved a temporary debt limit increase from a debt-to-GDP ratio of 60 percent to 70 percent. The higher ceiling is to expand the government’s fiscal space and would not pose a hindrance if the government has to secure a loan to implement medium-term fiscal policy. The economic crisis that has stemmed from the ongoing COVID-19 situation has prompted the government to increase its spending via its fiscal policy to mitigate the impacts from the outbreak. Funds for financing such efforts come from the budget for fiscal year 2020-2021, the THB 1-trillion loan decree, the THB 500 billion baht loan under the emergency decree and deficit financing which tends to remain at high levels. Based on these loans and a deep GDP contraction, ... Read more
FileSize KB