The Thai government nods another 1.5 billion USD in borrowing for 2024. (Photo: bangkokpost.com) Bangkok (VNA) – Thailand’s cabinet has approved an additional 560 billion THB (1.5 billion USD) in new borrowing for fiscal 2024, bringing total new borrowing for the fiscal year to more than 754 billion THB.
According to government spokesman Chai Wacharonke, the new borrowing is part of the government's revised public debt management plan for fiscal 2024, which encompasses three areas: new borrowing, adjustments to the existing public debt management plan, and modifications to the debt repayment plan.
For the new borrowing plan, borrowing is raised to 754.71 billion THB, up from the initially proposed amount of 194.43 billion THB.
The public debt management plan was adjusted to 2.00 trillion THB, up from 1.62 trillion THB, while the debt repayment plan was raised from 390.54 billion THB to 399.62 billion THB, representing a gain of 9.08 billion THB. The new borrowing is mainly to offset the budget deficit for fiscal 2024 and manage the liquidity of the treasury reserve.
According to Chai, the adjustments to the public debt management plan align with relevant laws and regulations, particularly the State Fiscal and Financial Discipline Act of 2018, which sets a ceiling for public debt at 70% of the country's GDP. With these adjustments, the public debt-to-GDP ratio is 61.3%.
Following these adjustments, he said the ratio of government debt to annual state revenue, capped at 35%, would tally 33.1%, while the proportion of foreign currency-denominated public debt to total public debt, limited to 10%, would register at 1.5%. The ratio of foreign currency-denominated public debt to export earnings from goods and services, capped at 5%, is at 0.4%.
He noted that the cabinet also approved the inclusion of an additional 56 development projects into the revised public debt management plan.
Analysts estimate the fiscal 2024 budget will be approved and ready for disbursement by early May./.
