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Bloomberg
Thailand plans new borrowing of 1 trillion baht ($30.5 billion) for its latest stimulus package to tackle the economic impact of the coronavirus outbreak.
The package is worth about 1.9 trillion baht overall as it also includes 900 billion baht of steps by the Bank of Thailand, finance minister Uttama Savanayana said in a briefing in Bangkok.
The Thai economy is on course for its largest contraction since the 1990s because of a slump in tourism, exports and confidence, increasing pressure on Prime Minister Prayuth Chan-Ocha’s government to scale up spending.
“Covid-19 is now our national agenda,†Prayuth said in a briefing. “I’ll be stringent about how we spend, and that the spending is done most effectively.â€
Implementation of the revised borrowing plan is due from May and will take place in several rounds with a deadline of September next year, the administration said, adding that 80 billion baht to 100 billion baht of existing budget funds will be reallocated to tackle the fallout of Covid-19. The administration announced the details of the latest stimulus program on April 3. On Tuesday, it said the initiative is worth about 9% of GDP, adding that a heavily oversubscribed cash handout program is being extended by three months.
The public debt-to-GDP ratio is expected to reach 57% in 2021, below the limit of 60% under fiscal rules, Uttama said.