Not at all, the office says.
It reports that the national debt-to-gross domestic product (GDP) ratio stands at 50 per cent and has said that it will have no significant impact on the Government’s spending discipline as the figure is still well below the ceiling considered the safe maximum by economists.
Director of the Public Debt Management Office, Chakkrit Parapuntakul, has reported that the Government’s plan to borrow B800 billion will raise the public debt to gross domestic product ratio from 42 to 48.6 per cent in 2012.
But Mr Chakkrit said this will have no effect on the Government’s spending discipline as the new debt ratio is still well below the 60 per cent generally regarded as the maximum for a healthy economy.
The USA, Japan, Britain, Germany, France and other major world economies all have much higher debt-to-GDP ratios than Thailand. Japan ranks highest in the world with a ratio of 220 per cent, according to 2011 IMF estimates.
Moreover, the Government will not borrow B800 billion all at once, because some major long-term projects will be funded through committed budgets.
Funding for other projects may be borrowed from the money markets, but then be converted into long-term bonds at a later date.