The Public Debt Management Office (PDMO) is keen to defend the cap of 60% on the ratio of public debt to GDP, saying the limit is in line with international standards and provides sufficient fiscal space to cushion against crises and drive growth. Her remarks came after former finance minister Sommai Phasee said the current framework limiting public debt to 60% of GDP is outdated and the proper level should be 50%. The increasing ratio of public debt to GDP stems from the government's additional borrowing to finance big-ticket infrastructure development, particularly for transport. According to PDMO data, public debt amounted to 6.81 trillion baht, representing 41.8% of GDP, as of November last year. Moreover, payment liabilities incurred from pork-barrel spending are capped at 30% of annual budget expenditure, while foreign-denominated public debt must not exceed 10% of the overall public debt and 5% of exports and services.
Source: Bangkok Post January 12, 2019 00:00 UTC