PDMO still upbeat on impact of pledging schemes

PUBLIC DEBT

PDMO still upbeat on impact of pledging schemes

Published: 29 Dec 2012 at 00.00
Newspaper section: Business

The Public Debt Management Office (PDMO) is confident that losses from various crop intervention schemes will not greatly affect the level of public debt over the next seven years.

Critics have voiced concern that the annual borrowing of 400 billion baht to intervene in the market of cash crops such as rice, cassava and maize could damage the state budget significantly.

For the season ended this past September, the Finance Ministry expects 70 billion baht in losses from crop pledging schemes, mainly for rice.

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boons
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Discussion 1 : 29 Dec 2012 at 06.261
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> "The agency predicts the ratio of public debt to GDP will peak at 49.9% in 2016 and gradually decline to 46.1% in 2019."

Right. Because in some magical, fairy-tale future it will be a good time to pay down debt.

Here's a simple question: Why is it appropriate at this particular time to increase public debt? Is there some emergency going on somewhere?

And what happens when the public debt limit is reached, and then there actually is an emergency that "no one could have foreseen"? Will it then be appropriate to take on more debt past the debt limit?

The time to act responsibly is now. Taking on unrepayable debt is fraud.
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PDMO still upbeat on impact of pledging schemes | Bangkok Post: business