The Cabinet this week approved 1.41 trillion baht in new borrowing for the current fiscal year to September, up from its previous plan of 1.36 trillion baht.
Deputy Government Spokesperson Rachada Thanadirek explained that the additional debt is part of a broader debt management strategy to reduce public debt to 62.76% of gross domestic product (GDP). This would keep it well below the 70% ceiling.
As of February, Thailand’s state debt stood at 60.17 percent of GDP.
She further clarified that the new debt strategy includes a 10 billion baht loan to the national oil fund to keep domestic gasoline prices stable without affecting living expenses.
Rachada said the government also intends to spend 29.3 billion baht on restructuring government debt due this fiscal year, which may include international borrowing. The administration would spend another 39.4 billion baht on investment projects.