Public Debt, Current Account Balance, and Fiscal Balance: The Threshold Effects in Selected ASEAN Countries

Indebtedness is a huge global issue faced by all economies around the world since older time until today. The high and increasing debt levels have become concern, public has core of turmoil that began few years ago. When government's spending in year exceeds its revenue, there will be budget deficit for fiscal year. Hence, it must use to fill funding gap. This situation creates an annual deficit, which cannot end accumulated becomes unsustainable finances collapse. this study aimed assess impact threshold on current account balance selected ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam) adopting data from 1990 2021. In panel long run estimation pooled mean group (PMG) estimator, affects twin balances positive relationship. empirical analysis, single sample splitting model employed either below or above level. outcomes indicate level at 63.36%. 63.36%, negative relationship between balance; whereas when higher than nexus balance. result implies divergence exceeding