The government is planning to borrow around 820 billion baht in the 2023 fiscal year, which begins October 1, mostly to finance a budget deficit as it seeks to boost the nation’s economic recovery.
According to the Ministry of Finance, the Cabinet approved new borrowing on September 27 as part of a wider debt management plan for the new fiscal year. The plan is part of a larger borrowing of 1.05 trillion baht for fiscal 2023, of which 233 billion baht will be borrowed by state enterprises and government agencies for investments such as transportation, energy and public utilities.
The ministry also disclosed information concerning the debt management plan, which includes the existing debt of 1.74 trillion baht and 360 billion baht debt repayment. The 2023 debt plan focuses on stimulating the economy through infrastructure investment and mitigating the impact of global oil price volatility and the Russia-Ukraine conflict. As inflation reached a 14-year high, the government implemented a variety of measures to help mitigate the impact of rising oil prices and living costs.
Last week, Finance Minister Arkhom Termpittayapaisith predicted that the economy will expand 3-3.5% this year. He added that the government expects a budget deficit of 695 billion baht for the fiscal year. The country’s public debt is projected to reach 60.43% of gross domestic product by the end of the fiscal year, staying within the approved limit of 70% of GDP. (NNT)