Thailand’s government pledged to ensure its US$78 billion ($100.2 billion) borrowing plan in the next fiscal year won’t crowd out the private sector.
The government plans to raise its borrowing in the fiscal year starting October to THB2.59 trillion ($100.5 billion), the Ministry of Finance’s Public Debt Advisor Jindarat Viriyataveekul told reporters in Bangkok on Wednesday. Bloomberg News earlier reported the data.
About THB1.1 trillion will be fresh borrowing to mainly finance the budget deficit, while the rest has been earmarked for the refinancing and restructuring of existing debt, she said.
Newly-appointed Prime Minister Paetongtarn Shinawatra’s government is raising the budget for the 2025 fiscal year to US$112 billion to boost growth. Southeast Asia’s second-largest economy is facing near record-high household debt, sluggish exports and a manufacturing sector weakened by cheap imports, mainly from China.
The borrowing plan includes THB1.25 trillion of sovereign bonds, THB140 billion via bond switching, THB520 billion of treasury bills, and THB120 billion of savings bonds. Promissory notes and term loans may make up the rest.
