BANGKOK: The government is still reviewing whether it needs to issue a 500-billion-baht (US$15.6 billion) emergency borrowing decree, the finance minister said, as authorities seek to support the economy hit by high oil prices.
Further discussions will be held with Deputy Prime Minister Pakorn Nilprapunt to assess the legal and financial necessity of issuing such a decree, Ekniti Nitithanprapas told reporters late on Monday.
Pakorn had said the government planned a 500-billion-baht emergency borrowing decree, and that the public debt ceiling would be increased.
Ekniti said Thailand's public debt-to-GDP ratio currently stands at about 66 per cent, leaving four percentage points of fiscal space, or around 800 billion baht, under the current 70 per cent debt ceiling.
If borrowing needs remained within that limit, issuing an emergency borrowing decree or raising the debt ceiling may not be necessary, said Ekniti, who is also a deputy prime minister.
Thailand’s debt-to-GDP ratio is not high compared with other countries, including those in South-East Asia and Europe, he said.
The World Bank, the International Monetary Fund, and credit rating agencies agree that how any borrowed funds are used matters more than whether Thailand borrows, Ekniti said.
The finance ministry has not yet submitted a planned consumer subsidy scheme to the cabinet for consideration as funding details need to be finalised, but the proposal is expected to be ready soon, he said. - Reuters
