The Thai Cabinet approved a revised public debt management plan for the 2024 fiscal year, incorporating an additional 275.87 billion baht in borrowing. Of this, 269 billion baht is designated for direct government use and lending to state enterprises for debt restructuring.
According to Deputy government spokesperson Rudklao Suwankiri, this revision increases the total new borrowing for the current fiscal year to 1.03 trillion baht, up from the 754.71 billion baht outlined in the original plan. Consequently, the public debt-to-GDP ratio will rise to 65.05%, compared to the previous 61.29%. Despite the increase, the ratio remains below the 70% framework ceiling.
The revised plan incorporates three key points, beginning with an increase in borrowing limits by 275.87 billion baht, which brings the total new borrowing to 1.03 trillion baht, including 269 billion baht for government use and lending to state enterprises. State agencies such as the State Railway of Thailand, the Provincial Electricity Authority, and the Provincial Waterworks Authority are expected to borrow an additional 3.4 billion baht from these funds.
The second phase of the plan includes changes to the existing debt management. The plan sees an increase of 33.42 billion baht, raising the total to 2.04 trillion baht. Domestic debt management increases by 66.7 billion baht, addressing the restructuring of loans due in fiscal 2024 (16.7 billion baht) and loans due from 2025 to 2028 (50 billion baht). Meanwhile, foreign debt management decreases by 26.01 billion baht.
Lastly, the debt repayment plan increases by 54.55 billion baht, bringing the total to 454.16 billion baht. Government debt repayment rises by 54.55 billion baht, while state enterprises’ debt repayment increases by 25.3 billion baht.
The Cabinet directed the Budget Bureau to allocate budgets for principal and interest payments to ensure they align with the debt size due this fiscal year. Notably, the repayment of the principal of government debts should not be less than 3% of the annual expenditure budget, reported The Nation.
Additionally, the Finance Ministry has been tasked with evaluating state enterprises’ borrowing methods, terms, debt guarantees, and risk management. State agencies capable of independent borrowing are encouraged to do so as deemed necessary for their operations, according to the spokesperson.
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