Government Spokesperson Rudklao Suwankiri Announces Revised Debt Management Plan with Increased Borrowing
The Thai Cabinet has approved a revised public debt management plan for the 2024 fiscal year, which includes an additional 275.87 billion baht in borrowing. This decision brings the total new borrowing for the current fiscal year to 1.03 trillion baht, up from the original plan of 754.71 billion baht. Deputy government spokesperson Rudklao Suwankiri shared that this increase will raise the public debt-to-GDP ratio to 65.05%, still below the 70% framework ceiling.
The revised plan focuses on three key points. Firstly, there is an increase in borrowing limits by 275.87 billion baht, with 269 billion baht designated 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.
Secondly, changes to existing debt management include an increase of 33.42 billion baht, bringing the total to 2.04 trillion baht. Domestic debt management will increase by 66.7 billion baht, addressing loan restructuring and repayment. Foreign debt management, on the other hand, will decrease by 26.01 billion baht.
Lastly, the debt repayment plan will see an increase of 54.55 billion baht, with government debt repayment rising by 54.55 billion baht and state enterprises’ debt repayment increasing by 25.3 billion baht. The Cabinet has directed the Budget Bureau to allocate budgets for principal and interest payments to ensure they align with the debt size due this fiscal year.
The Finance Ministry has also 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 necessary for their operations. Despite the increase in borrowing, the government aims to manage its debt responsibly and ensure financial stability in the long run.