The newly formed Center for Economic Situation Administration wants to create 1 million jobs for new graduates and laid-off workers. While the move to sustain employment and create new jobs has good intentions, it could come at a cost as public debt balloons from relentless stimulus via fiscal policy. The Public Debt Management Office (PDMO) expects Thailand's ratio of public debt to GDP to rise to nearly 58% as a result of government spending to mitigate Covid-19 impact and lower revenue collection. If the government borrows the full loan amount, this will increase the ratio of public debt to GDP to 52.4% in 2020, according to the PDMO. With this scenario, public debt is expected to increase to 52-54% of GDP this year, up from 42% last year, then expanding further to 57-60% next year, Ms Nattaporn said.

Source: Bangkok Post August 31, 2020 00:33 UTC