The existing fiscal regulations have loopholes that might allow the government to create excessive debts, say Thailand Development Research Institute's economists.
Pakorn Vichyanon, a senior economist, said the state has no ceiling on its guarantee on debt for listed state-owned enterprises, especially basic utilities such as power, water and telecommunications, though unlisted state-owned enterprises have a restricted guarantee of 10% of the annual budget.
The government is restricted by law to keep borrowing under 20% of its annual budget, but it occasionally enacts executive decrees for off-budget borrowing that can exceed the legal cap. Examples include the 400-billion-baht Thai Khem Kaeng bill in 2009; the Bank of Thailand's 300-billion-baht in soft loans for flood rehabilitation in 2012 and 350 billion in water management borrowing in the same year.
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