The current public debt ceiling provides enough room for the government to borrow to implement economic reforms, says Public Debt Management Office (PDMO) director-general Patricia Mongkhonvanit.
The government recently raised the ceiling of the public debt-to-GDP ratio to 70% from 60%. This move followed the government issuing two emergency loan decrees over the last two years to allow it to borrow 1.5 trillion baht to mitigate the impact of the Covid-19 pandemic on the economy.
Mrs Patricia said the government is unlikely to launch additional new measures to cushion the impact of the pandemic on the economy.
If the government wants to borrow for new economic reforms, there is enough room to do so under the current debt ceiling, she said.
Still, Mrs Patricia said the government will not continue borrowing until the level of debt reaches 70%.
She said measures to reform the economy might not necessary result in a sharp spike in the debt ratio as the investment could stimulate economic growth, keeping the debt ratio at a steady level.
The public debt-to-GDP ratio is expected to reach 62% at the end of fiscal 2022, up from the current level of 59.9%, pending economic growth this year.
The Finance Ministry projects economic growth to be in a range of 3.5-4.5% this year.
Thailand's budget for repaying the debt principal in fiscal 2022 accounts for 3% of the total expense budget.
PDMO proposed to the Budget Bureau for fiscal 2023 this budget make up 4% of the total expense budget.
The office set a budget for interest payments of 198 billion baht in fiscal 2022 and 200 billion in fiscal 2023.
This year PDMO plans to offer 1.1-1.3 trillion baht worth of long-term bonds, compared with the launch of 800 billion baht worth of such bonds last year.
Long-term bonds with a fixed interest rate account for 83% of its total debt portfolio.