Thai govt plans $21.6B in new borrowing in fiscal year 2023

A man holds up a 20 baht polymer banknote at Bank of Thailand headquarters in Bangkok, Thailand. REUTERS/Chalinee Thirasupa

BANGKOK – Thailand’s government plans new borrowing of about 820 billion baht ($21.64 billion) in the 2023 fiscal year starting Oct. 1, mainly to finance a budget deficit, the finance ministry said on Tuesday, as it tries to bolster economic recovery.

The borrowing is part of a wider debt management plan in the fiscal year, which also includes existing debt of 1.74 trillion baht ($45.92 billion) and 360 billion baht debt repayment, the ministry said in a statement.

The overall debt plan, approved by the cabinet on Tuesday, also includes new borrowing of 233 billion baht by state enterprises and other government agencies, it said.

The 2023 debt plan focuses on stimulating the economy through infrastructure investment and mitigating the impact of global oil price volatility and unrest between Russian and Ukraine, it said.

The government has introduced various measures to help ease the impact of high oil prices and living costs as inflation hit a 14-year high.

Last week, Finance Minister Arkhom Termpittayapaisith said he expected the economy to grow 3 percent to 3.5 percent this year.

The government projects a budget deficit of 695 billion baht ($18.34 billion) for the fiscal year, the ministry said.

Thailand’s public debt is expected to be at 60.43 percent of gross domestic product at the end of the fiscal year, still within an approved limit of 70 percent of GDP, it said.

As of July, the debt-to-GDP ratio was at 60.75 percent.

($1 = 37.89 baht)