Thailand to borrow US$21.64 billion in fiscal 2022

The finance ministry said on Tuesday that Thailand's government plans to borrow 820 billion baht US $21.64 billion in the fiscal year 2023 starting October 1, mainly to finance a budget deficit as it tries to bolster economic recovery.

The ministry said that the borrowing is part of a wider debt management plan that includes existing debt of 1.74 trillion baht US $45.92 billion and 360 billion baht debt repayment in the fiscal year.

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

The debt plan aims to promote the economy through infrastructure investment and to mitigate the impact of global oil price volatility and unrest between Russian and Ukraine in the year 2023, it said.

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

Finance Minister Arkhom Termpittayapaisith said last week he expected the economy to grow 3 per cent to 3.5 per cent this year.

The ministry said that the budget deficit is 695 billion baht US $18.34 billion for the fiscal year.

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

The debt-to- GDP ratio was 60.75 per cent as of July.