Public debts to stay below 50% of GDP

By The Nation

The Public Debt Management Office insisted that the growing budget deficits would not push the public debts over half of the gross domestic product.

Director-General Pongpanu Svetarundrangpanu said on Wednesday that the market is large enough to accommodate the government's additional fund-raising to finance the bigger budget deficit.

The Cabinet on Tuesday approved the 3-year spending plan of Bt7.1 trillion. In 2009, the budget deficit would rise to Bt349 billion or 3.5 per cent of GDP, from the previous deficit target of Bt249 billion.

On Wednesday, the office's 5-year bonds worth Bt10 billion were 3.5 times oversubscribed, convincing Pongpanu that there is ample demand for additional government bonds.

He noted that most demand comes from institutional investors.

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Public debts to stay below 50% of GDP

The Public Debt Management Office insisted that the growing budget deficits would not push the public debts over half of the gross domestic product.

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