State urged to rethink fiscal framework
PDMO sees vital role for state borrowing
Given the economic turbulence brought about by the pandemic, the government may need to rethink its fiscal sustainability framework, which caps public debt at 60% of GDP, says the Public Debt Management Office (PDMO).
Patricia Mongkhonvanit, PDMO’s director-general, said with the current economic crisis, government borrowing is instrumental in shoring up the economy.
Last year, the government issued a royal decree to borrow 1 trillion baht to remedy and revitalise the virus-ravaged economy.
Even with the decree, Thailand’s public debt-to-GDP ratio is expected to stay below the 60% ceiling — estimated to be 57% as of the end of fiscal 2021 — in…
