Majority economists against borrowing bill

The majority of economists supported the government's Bt2 trillion infrastructure investment, but opposed the planned issuance of the borrowing bill to finance the investment.

The Cabinet today is reviewing the investment plan for the last time.

Bangkok University Poll, conducted during March 13-18, shows that only 25 per cent of 60 economists preferred the borrowing law to conventional financing methods. 56.7 per cent however voiced that the borrowing law could entail associated problems such as an increase in public debt as well as corruption.

Sixty per cent of the surveyed economists fears that the public debt could surpass 60 per cent of gross domestic product (GDP). 21.7 per cent shows no worry on the public debt issue, saying that the current debt ratio remains low and that new investment will create jobs and enhance the country’s competitiveness.

Eighty eight per cent show low or zero confidence in the government’s ability to curb corruption concerning the investment. 48.3 per cent also believed that this scheme would be more corrupted than other government schemes.

Ninety seven per cent of them highlighted the need for such investment, especially ahead of the Asean Economic Community in 2015. 81.6 per cent sees that the country’s financial condition in the next 7 years is supportive to fund-raising for the purpose.

Thailand is now ranked the 38th among 144 economies in the World Economic Forum’s competitiveness ranking.

In the infrastructure pillar, it is the 46th. In the sub-category, it is ranked 49th in terms of overall infrastructure quality; 39th for road quality, 65th for railroad infrastructure, 56th for port quality and 33th for air transport infrastructure. Other infrastructure includes electrity supply, mobile phone network and fixed line network.