11 Apr 2023
Thai Economy
Fiscal measure via funds transfer... Read more
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13 Jan 2022
It is likely that the budget deficit during 2022-2023 will continue to rise higher than pre-pandemic levels, and this may in turn affect the government’s borrowing plans in 2022. KResearch expects that outstanding public debt (based on the calendar year) may approach THB9.90 trillion in 2022, an increase of THB1.50 trillion over that reported for 2021. Of that total, a big portion will likely be mobilized through the issuance of more government bonds and treasury bills. However, the impact on liquidity in the overall Thai bond market may be limited as the Bank of Thailand (BOT) is expected to reduce the limit of its bond issuance 2022, and redeem some of its bonds, with the aim of releasing more liquidity into the market, and offering room for the issuance of more government bonds per the government’s borrowing plans to facilitate its COVID-19 rehabilitation measures. ... Read more
21 Sep 2021
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
20 May 2021
The Cabinet recently approved the draft of an executive decree authorizing the government to borrow another THB700 billion, in addition to the previous THB1 trillion loan, which has almost been used up. The new loan is intended to help enhance the government’s flexibility in ensuring that the economy can weather the impact of the latest wave of COVID-19. The real use of the new loan will rest on the COVID-19 situation and economic conditions in the future. If the draft of an executive decree was not approved amid the protracted pandemic, the government would lack a fiscal tool to implement a COVID-19 relief package. ... Read more