The Faculty of Science, Thammasat University, kept an eye on the public debt of Thailand after finding out that in 2023, there was a high accumulated debt of 10 trillion baht, due to the fact that the government had insufficient income for expenses. Ready to advise households and teenagers to build themselves Minimize debt, save money for emergencies. and invest to be
Associate Professor Dr. Wichai Wittayakiatlert Lecturer in Mathematics and Statistics Faculty of Science and Technology, Thammasat University revealed that “Currently, Thailand has accumulated public debt of up to 10 trillion baht, or 60-61 percent of GDP.
It is ranked in the country with the 120th public debt burden in the world and the 4th in ASEAN from the case that the state has insufficient income to cover expenses. Although income from tax and commercial government is more than 2.66 trillion baht per year.
In 2023, it is expected that the state’s revenue will increase at 2.7-2.8 trillion baht from a loan plan of more than 3.22 trillion baht, part of which will be used to manage and invest in social infrastructure. to improve the quality of life and livelihood of people as well as helping vulnerable groups who lack income from the COVID-19 situation
which from such situation The Faculty of Science, Thammasat University, has taken such information for analysis. mathematics and statistics In conjunction with Thailand’s social context, the Roadmap ‘Reducing Public Debt’ has been developed as a guideline for Thai government agencies. Through operations in 3 phases as follows
1. Short-term, reducing unnecessary expenses or considering the worthiness of incurring debt through the establishment of a debt relief program to resolve short-term debt
2.Medium term: Helping vulnerable groups who lack income access to career opportunities. Including SME entrepreneurs (SME) with increased income To have income to pay taxes and reduce the burden of paying compensation in the event that people have no income
While the state has income to use to develop the country without having to borrow or have money to pay back debt through the development of projects to create employment including various infrastructures
3. Long-term, upgrading the potential and standard of products that are Thailand’s strengths. both in agriculture and local raw materials with science and technology to create interesting agricultural products and food innovations in addition to exporting only raw materials
While ‘household debt’ is likely to increase by 90 percent in the fourth quarter of 2022 as people have greater access to funding from the 2020-2021 statistics, it was found that 34.3 percent were debt for consumption. person
and 65.7 percent is debt for investment and generate future income. Both real estate, automotive and business investment. As a result, a large number of bad debts were created.
Most recently, after the debt restructuring in the first quarter of 2023, the NPL value dropped to 498.0 billion baht, or the ratio of NPL to total loans was 2.68 percent. Fragile with slow income recovery and high debt (Source: Bank of Thailand, 2023)
In addition, the Faculty of Science, Thammasat University has guidelines for building immunity and building long-term financial stability for the public sector. can be divided according to the hierarchy of life as follows
– Beginning to work until the age of 35 Must create basic wealth for yourself, such as keeping an emergency reserve of at least 6 times the personal expenses each month Savings for learning new things or skill development. Build good financial credit Study investments for retirement Gradually buy insurance for yourself.
– 35-55 years old age of accumulation of wealth The savings should be invested in order to grow. Buy your own property In addition, it should also update the financial plan for retirement itself. Is the goal set according to the plan? If the target is not achieved, the investment plan may need to be revised.
– 55-65 years old The age of planning before retirement Monthly personal expenses should be calculated. or looking for a small job Do it to make extra income to solve boredom. Including a long-term financial plan for taking care of your own health in retirement.
– Retirement age 65 years and over The age group that considers the conditions in life that exist along with the money accumulated throughout life. View your own life and health insurance plans. To plan with available cash, however, in addition to age conditions Financial planning must be considered in line with factors that occur in life, such as having children at old age. or plan for early retirement
However, in the digital age, we will find a large number of self-made teenagers. But instead encountered the problem of saving money. which can be solved in 3 steps:
1. Debt as little as possible. (as far as possible) There should be more money left than expenses. and have a monthly debt-to-income ratio of no more than 60 percent or lower
2. have money saved up for emergencies There should be an emergency savings of 6 months or more because of the recent COVID situation, many companies have sudden layoffs or reductions in revenue.
3. Invest to be unlocked for future wealth Easy start investing such as buying mutual funds in the country Mutual funds investing in foreign countries, etc. It is also worth studying personal income tax management. reduction through donation Buying Mutual Funds to Save on Tax Expenses
“Even though Thai public debt tends to increase every year. But it did not affect the country’s financial stability. With experience in the Tom Yum Kung crisis and the Bank of Thailand’s strict and strong measures
“But if Thailand can reduce the said debt which may not be necessary to the point of ‘clearing the debt’ would have a positive effect on the country in many dimensions Both towards the public sector that does not have to revolve to pay large debts The business sector has an increasing value of foreign investment. from having an atmosphere conducive to investment
In the past, the Faculty of Science, Thammasat University has cultivated long-term financial planning. Through adjusting the savings attitude with the equation ‘income – savings = expenses’, that is, “saving before spending”, starting with a minimum saving of 10-20% of income
In addition, if considering the country’s vulnerable groups, such as daily wage workers that currently have The ‘minimum wage rate’ is as high as 354 baht per day. The daily savings equation should be adjusted by about 5-10%, or equivalent to 17-35 baht, so that there is enough money left for spending and savings. accumulated in case of emergency,” said Associate Professor Dr. Wichai.
2023-07-04 07:56:50
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