Thailand
Thailand: B100bn set aside to repay principal in 2022
The government has set a budget of 100 billion baht to pay the principal on debt for fiscal 2022.
The amount, which accounts for 3.2% of the government’s expenditure for that fiscal year, reflects its strong ability to repay debt, said Public Debt Management Office director-general Patricia Mongkhonvanit.
Most of this planned principal payment is for loans funding the country’s infrastructure, Mrs Patricia said.
The government is required by law to set the principal payment for debt at 2.5%-4% of the fiscal year’s expenditure to maintain fiscal discipline.
She said the ratio of interest payment to the country’s total revenue is only a little over 7%.
Mrs Patricia said the government would borrow at an appropriate level to control the debt level.
A higher debt means it has to set a larger budget for principal and interest payments, and this could affect the country’s development, she said.
The government has prioritised economic stability and expansion, said Mrs Patricia. If the economy expands, the debt-to-GDP ratio will fall.
An executive decree allowing the Finance Ministry to borrow 500 billion baht to fight Covid-19 recently came into effect. The decree is the second to deal with Covid-19 after the 1-trillion-baht borrowing decree last year.
Source: https://www.bangkokpost.com/business/2141939/b100bn-set-aside-to-repay-principal-in-2022