Government Spokesperson Rudklao Suwankiri Announces Revised Debt Management Plan with Increased Borrowing
Government spokesperson, Rudklao Suwankiri, recently announced the approval of a revised public debt management plan for the 2024 fiscal year by the Thai Cabinet. This plan includes an additional 275.87 billion baht in borrowing, with 269 billion baht allocated for direct government use and lending to state enterprises for debt restructuring.
This revision increases the total new borrowing for the current fiscal year to 1.03 trillion baht, up from the original plan of 754.71 billion baht. As a result, the public debt-to-GDP ratio will rise to 65.05%, compared to the previous 61.29%, but still remains 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, bringing the total new borrowing to 1.03 trillion baht. 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 have been made to existing debt management, with an increase of 33.42 billion baht, raising the total to 2.04 trillion baht. Domestic debt management increases by 66.7 billion baht, while foreign debt management decreases by 26.01 billion baht.
Lastly, the debt repayment plan sees an increase of 54.55 billion baht, bringing the total to 454.16 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.
Overall, the revised debt management plan aims to address the financial needs of the government and state enterprises while ensuring that debt remains manageable and sustainable. Rudklao Suwankiri’s announcement sheds light on the government’s efforts to navigate the economic challenges facing Thailand in the coming fiscal year.
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