Govt to borrow Bt1.3 trillion, as public debt borders fiscal sustainability threshold

[webfact]

Govt to borrow Bt1.3 trillion, as public debt borders fiscal sustainability threshold

By The Nation

 

 

The Cabinet on Tuesday approved the public debt management plan proposed by the Finance Ministry for fiscal year 2021 (October 2021 to September 2021), Government Spokesman Anucha Burapachaisri said.

 

The Finance Ministry’s Public Debt Management Office plans to borrow Bt1.3 trillion and manage existing debt totalling Bt387.5 billion.

 

The ministry said facilitating recovery of the economy hard hit by the Covid-19 pandemic and financial aid packages to support affected people and corporations had resulted in large budget deficits. The government also wants to borrow more to boost economic activities and its cash flow.

 

Should the government go ahead with the borrowing plan, public debt will jump to 57.23 per cent of gross domestic product, close to the sustainable level of 60 per cent of GDP. As of July 31, public debt stood at Bt7.6 trillion, or equivalent to 47.04 per cent of GDP, according to the Public Debt Management Office.

 

In related development, the Cabinet also approved a Bt1.51-trillion spending plan for 44 state enterprises for fiscal 2021.

 

Combined with other state enterprises' spending, the expenditure of all 52 state enterprises would be Bt1.55 trillion of which capital spending is Bt432 billion. The capital spending is expected to boost economic growth, said Rachada Dhnadirek, deputy government spokeswoman.

 

Source: https://www.nationthailand.com/business/30395351

 

-- © Copyright The Nation Thailand 2020-09-30

 

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[Surelynot]

I am confused....I thought Thailand was cash rich and rolling it? One of the reasons the country's currency is so strong?

[ThailandRyan]

Why borrow, and from who.  Just start printing money like the other countries do.

[Mr Meeseeks]

Financial mismanagement on an unprecedented scale.

 

No wonder none of the weekly merry-go-round Finance Ministers want the job.

Edited September 30, 2020 by Mr Meeseeks

[Mr Meeseeks]

Thais are starting to wake up to this mob now though and to where the money is really going and to the fact that they have had what was promised them stolen from under their noses while a few in uniform get even more unusually rich.

 

This is what you get when you have military coups though, as Thai history quite clearly has shown us.

[SweatySock]

Quote

 

Quote

Quote

fiscal year 2021 (October 2021 to September 2021),

 

Strange calendar.

[JoePai]

If only 57.23 per cent of GDP then Thailand is doing well - good job everyone

[PatOngo]

1 hour ago, webfact said:

The Finance Ministry’s Public Debt Management Office plans to borrow Bt1.3 trillion and manage existing debt totalling Bt387.5 billion.

Well thankfully there's plenty left over from the 387.5 billion thb debt for the trough! The snouts will be well fed!

[Flying Saucage]

It is easy for the government to get this money. It simply will be another Chinese loan, as before already for other Covid measures, as for high speed trains, as for submarines. The generals will receive a nice commission and as a bonus everyone another Philippe Patek watch. 

 

Thailand never will be able to pay back all these loans to China. Think about who pays really tax in Thailand! So, in fact the country is beeing sold to China.

 

Neither China nor the Thai governmant needs us expats or tourists anymore, nor to the want us to be here. Thanks to Prayut, Thailand is now vassal state of China, or even a defacto colony, while it officially will stay independent, of course, as this gives China more political power on the global stage.

[Huckenfell]

5 hours ago, ThailandRyan said:

Why borrow, and from who.  Just start printing money like the other countries do.

Got to pay for those desperately needed submarines i suppose.

[Emdog]

Cut the subs and high speed rail projects and see how much less they might need to borrow

[86Tiger]

Private debt 80%, public debt 57%.

 

That's lot of debt.

[Bender Rodriguez]

why don't they use their billions of foreign currency and lower the baht to a normal covid rate 

[John Drake]

6 hours ago, ThailandRyan said:

Why borrow, and from who.

You got 800,000 in your retirement account? We'll, that's where they'll start.

[hotchilli]

7 hours ago, Mr Meeseeks said:

Thais are starting to wake up to this mob now though and to where the money is really going and to the fact that they have had what was promised them stolen from under their noses while a few in uniform get even more unusually rich.

 

This is what you get when you have military coups though, as Thai history quite clearly has shown us.

Maybe the end is nigh and overseas accounts will be filled prior to some people disappearing.

[Knocker33]

8 hours ago, ThailandRyan said:

Why borrow, and from who.  Just start printing money like the other countries do.

Need you ask who they are borrowing it off? What's the first flight allowed in Chinese millionaires. 

[essox essox]

Talk about digging a hole.......this place is going to be, and is now, in a complete MESS!!!!

[essox essox]

On 9/30/2020 at 9:26 AM, SweatySock said:

Strange calendar.

tizz a THAI CALENDAR.......not many around!!!!

[JimGant]

On 9/30/2020 at 9:06 AM, Mr Meeseeks said:

Thais are starting to wake up to this mob now though and to where the money is really going and to the fact that they have had what was promised them stolen from under their noses while a few in uniform get even more unusually rich.

What a stupid statement:

 

Quote

public debt will jump to 57.23 per cent of gross domestic product,

Very manageable, particularly compared to the first world nations (OECD). Plus, Thailand's current account is a world's leader. Plenty of room for Keynesian economics.

 

The mob? Oh, you mean like a military mind taking over from a Shiniwatra rice queen mind...... You think she could have done any better -- or her brother?

Ok, maybe -- but doubtful. These are tough times. That Thailand is covid free is a very big plus. Let's just make sure we take advantage of that "bubble" to entice cabin fever tourists. That decisions are being made by former generals should not be a negative. Look at Eisenhower's 8-year reign -- the finest we've ever had, in all respects. Quit pis..... on the military -- they're capable and sincere about getting Thailand back to normal. (yeah, I know your prejudices won't allow you to believe that -- sounds like a personal problem).

 

[MarkoInThailand]

I am now starting to comprehend as to why our respective homelands (I am from down under) are going through the economic, political, moral and religious struggles. All of the Phd's from our respective countries have migrated to Thailand and now trying to save/change everything here. Good people, what's truly missing in your life? Thailand, and all here might not be perfect but then neither am I/we! My personal view is that Thailand is the best and most accommodating place on earth. Happiness and joy begins and ends at home. I am the only thing I have the power and right to change. All else is/should be left upto the locals. The indigenous way/s. Be happy and be creative! I am entering the sunset quadrant of my life. Let's give a bit of slack to the sunrise, midday and afternoon local quadrants. Regards, to you all. Enjoy your day/s in the "land of many colours". 

[ratcatcher]

13 minutes ago, MarkoInThailand said:

I am now starting to comprehend as to why our respective homelands (I am from down under) are going through the economic, political, moral and religious struggles. All of the Phd's from our respective countries have migrated to Thailand and now trying to save/change everything here. Good people, what's truly missing in your life? Thailand, and all here might not be perfect but then neither am I/we! My personal view is that Thailand is the best and most accommodating place on earth. Happiness and joy begins and ends at home. I am the only thing I have the power and right to change. All else is/should be left upto the locals. The indigenous way/s. Be happy and be creative! I am entering the sunset quadrant of my life. Let's give a bit of slack to the sunrise, midday and afternoon local quadrants. Regards, to you all. Enjoy your day/s in the "land of many colours". 

Welcome to TVF Marko. I wonder, do you have a new pair of these?   

[Mr Meeseeks]

On 10/1/2020 at 2:24 PM, JimGant said:

What a stupid statement:

 

Very manageable, particularly compared to the first world nations (OECD). Plus, Thailand's current account is a world's leader. Plenty of room for Keynesian economics.

 

The mob? Oh, you mean like a military mind taking over from a Shiniwatra rice queen mind...... You think she could have done any better -- or her brother?

Ok, maybe -- but doubtful. These are tough times. That Thailand is covid free is a very big plus. Let's just make sure we take advantage of that "bubble" to entice cabin fever tourists. That decisions are being made by former generals should not be a negative. Look at Eisenhower's 8-year reign -- the finest we've ever had, in all respects. Quit pis..... on the military -- they're capable and sincere about getting Thailand back to normal. (yeah, I know your prejudices won't allow you to believe that -- sounds like a personal problem).

 

My "statement" had nothing to do with Thaksin nor the Thai economy in general which goes to show you really don't actually know what I was referring to and what has been going on since the 2014 coup but that becomes blatantly obvious from reading your muddled post.

 

Eisenhower? What on Earth are you rambling about?

 

As Thai history demonstrably proves, Thai military administrations have been the most corrupt and self-serving, not to mention the most detrimental for the advancement of the country and of little benefit to the people. 

 

As to getting Thailand back to normal, well yeah, stroking frogs, throwing bananas at reporters, disappearing political activists, threatening journalists, shutting down free speech and political opposition, wasting money and totally mismanaging the economy are normal for Thai military governments I suppose.

 

Little inadequate fascists with limited mental capacity of rational, independent thought of course will love all this. 

[herfiehandbag]

On 10/1/2020 at 2:24 PM, JimGant said:

That decisions are being made by former generals should not be a negative. Look at Eisenhower's 8-year reign -- the finest we've ever had, in all respects.

There are two, really quite significant, differences.

 

1) Eisenhower stood for election as a genuine politician after he had retired from the Army. He did not seize power in a coup whilst serving, appoint himself and then regularise his position with a rigged election.

 

2) Eisenhower did not amass or hide unexplained wealth either as a result of his military service or as a result of his political activities.

[connda]

They need more submarines?

 

[connda]

42 minutes ago, ratcatcher said:

My personal view is that Thailand is the best and most accommodating place on earth.

Well, as compared to your home country with it's neo-totalitarian government that rivals Soviet era East Germany - yeah - Thailand would look rather pleasant and accommodating at the moment.

And as ratcatcher stated:

42 minutes ago, ratcatcher said:

Welcome to TVF Marko. I wonder, do you have a new pair of these?   

 

[connda]

On 9/30/2020 at 8:56 AM, Mr Meeseeks said:

Financial mismanagement on an unprecedented scale.

 

No wonder none of the weekly merry-go-round Finance Ministers want the job.

Finance Ministry is a revolving door job.  You come from the private banking sector, influence public fiscal and monetary policy, then exit the other side to capitalize on the pro-banking regulations you established during your tenure.  Now that's difficult (but not impossible) to accomplish when the economic wheels are falling off the buggy (e.g., the US Congress is siphoning trillions of dollars to US banks and corporations while leaving future taxpayers on the hook).  Anyone who takes that job at the moment probably has a long-term plan that will benefit themselves and their friends (i.e., emulate the US and EU models).  The rest of the nation and average citizens?  Inconsequential.  Toss them some spare change and siphon the real wealth to the wealthy and powerful.  This isn't just Thailand, it's pretty much the global model.

 

Edited October 4, 2020 by connda