Connect with us

Economics

Thai Think tank warns of escalating debt and public overspending

The Thailand Development Research Institute (TDRI) urged the government to reduce the country’s public debt, especially due to the annual Bt200 billion loss incurred from the highly-criticised rice pledging scheme which is set to drag on to 2017.

Boris Sullivan

Published

on

The Thailand Development Research Institute (TDRI) urged the government to reduce the country’s public debt, especially due to the annual Bt200 billion loss incurred from the highly-criticized rice pledging scheme which is set to drag on to 2017.

Somchai Jitsuchon, a leading TDRI economist, said today that investment in infrastructure in preparation for the ASEAN Economic Community, water management projects and the new corporate tax structure are some of the factors contributing to escalating public debts in 2013-2017.

More populist measures are pushed on the table as elections come closer

More populist measures are pushed on the table as elections come closer

He forecasts that Thailand’s economy this year will grow at least 5 per cent with inflation at 2.8 per cent, while export will be slightly higher than last year at 4.2 per cent.

The government should control public spending and adjust some projects he described as being exorbitant while increasing certain taxes such as the land tax, construction tax and value added tax.

Debt per capita will exceed 60 per cent if Thailand’s annual economic growth is lower than 6 per cent, the TDRI economist said, indicating that successful spending control will result in public debt control.

Somkiat Tangkitvanich, TDRI president, said the Bt300 daily minimum wage has boosted workers’ income, but negatively impacted some small-sized businesses in several industries.

The TDRI proposed that the government announce 2013-2022 as a decade of productivity growth for Thailand’s businesses by boosting labour skills, investment in research and development and launching education reform. (MCOT online news)

via Think tank warns of surging public debt, overspending | MCOT.net.

Concerned about a rising level of public debt, former finance ministers have urged the government to focus on fiscal discipline and stop its populist policies.

At a seminar on “Challenge for the Future of the Thai Economy in 2013” held by the Economic Reporters Association yesterday, former finance minister MR Pridiyathorn Devakula said two challenges were how to grow the Thai economy and how to keep the economy stable. To achieve both of these, the government has to pay more attention to the public debt.

Pridiyathorn said the current government was less concerned about fiscal discipline than populist policies to ensure voter support, and that could result in damage to the nation’s finances.

Before introduction of the rice-pledging programme, the public debt stood at Bt8.6 trillion (S$355 billion). If the scheme is continued, the debt could reach Bt10.3 trillion, or 63.7 per cent of gross domestic product, by the end of September 2019, he predicted.

Comments

Economics

Thai economy to grow 4% in 2021 following 6.5% decline in 2020

The World Bank is now expecting the Thai economy to see 4% growth this year, and a 4.7% growth in 2022, despite current challenges from the new wave of COVID-19 infections.

Olivier Languepin

Published

on

Crowded downtown area in Bangkok

The World Bank now expects that the Thai economy to expand by 4 per cent in 2021, according to the latest World Bank Thailand Economic Monitor report “Restoring Incomes, Recovering Jobs” released on Wednesday (Jan 20).

(more…)
Continue Reading

Banking

BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

(more…)
Continue Reading

Economics

COVID-19 brings first consumer confidence drop in 3 months

Consumer confidence in December 2020 was measured at 50.1 points, down from 52.4 the previous month. Economic confidence was also down to 43.5 from 45.6 points.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Concerns linked to the new wave of COVID-19 infections has weighed on both daily life and business, resulting in the first drop in the Consumer Confidence Index in 3 months.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,609 other subscribers

Trending