However, price stability has had to be compensated with
budget deficits since 1950. After 1950, the Thai government always managed expenditure
policy over revenue received, as a consequence this budget deficit was often financed by
public external debt (see Ingram 1971; Warr and Nidhiprabha, 1996; Jansen 1997). Total
external debt jumped from 16.6% of GNP to 51.3% in 2004. (see table 7). Total debt service
ratio used to be at the highest level standing of 27.4 in 1985 though its level was reveled off
after 1987 but then it jumped to more than 20% in 1998 after the economic crisis broke out.
However, this total debt service ratio has been declined to a manageable level at 8.4% in
2004.