Thailand to issue 30 billion baht savings bond to fund deficit and key welfare projects

A well-informed high-level source from the Finance Ministry has confirmed that the Public Debt Management Office (PDMO) will issue 30 billion baht in savings bonds for fiscal 2026.

This move is designed to help bridge the government’s budget deficit and fund essential public welfare projects, with the bonds set to be sold primarily through digital channels to ensure accessibility for a broader range of retail investors.

The bonds, expected to be rolled out by late May 2026, will offer attractive options for both short-term and long-term investors as part of the government's ongoing efforts to ensure continued funding for critical social programs and infrastructure.

Fundraising to cover budget deficit

According to the source, the bond issuance is part of the government’s strategy to cover the budget deficit. So far, the government has borrowed 50–60% of its target for deficit financing in fiscal 2026, with 646.129 billion baht already raised during the first half of the fiscal year.

This new round of bond issuance will help secure funding to meet the government’s obligations, including key programs that support Thai citizens, especially those impacted by increased living costs due to rising energy prices.

Special bond features for retail investors

The PDMO is considering structuring the savings bonds into two categories: short-term (3–5 years) and long-term (5–10 years). Interest rates will be aligned with market yields on government bonds, which have increased recently, with the five-year bond yield currently around 1.6%. To incentivise investment, the PDMO is expected to offer an additional interest premium to attract investors, especially those whose bonds are maturing and are showing renewed interest in re-investing.

This bond issuance will also help raise funds for the Thai Chuai Thai Plus program, which provides crucial financial support to citizens facing economic challenges, particularly from rising energy prices.

Supporting welfare projects: Thai Chuai Thai Plus

The savings bond issuance will fund the Thai Chuai Thai Plus initiative, which includes the Khon La Khrueng Plus co-payment scheme and the State Welfare Card program. The initiative will provide financial relief to 43 million Thai citizens, helping to ease the cost-of-living burden exacerbated by increased energy costs.

The government plans to open registration for both schemes on May 25, 2026, with benefits starting June 1, 2026. Each eligible participant will receive 1,000 baht per month for two months, with additional top-ups of 700 baht for State Welfare Card holders.

Debt management and economic recovery

This bond issuance is a key part of the government’s comprehensive debt management strategy, which aims to balance fiscal responsibility with the need for continued economic support. The Finance Ministry is also preparing to propose an additional 200 billion baht in new borrowing to ensure that the government can proceed with important welfare initiatives.

As confirmed by the source, the emergency loan decree issued on May 9, 2026, enabling the government to borrow up to 400 billion baht, is a critical part of this effort. The decree aims to finance vital social programs like Khon La Khrueng Plus and the State Welfare Card updates, which will directly assist millions of citizens affected by the economic downturn.

The Ministry will present its proposal for the second phase of debt management to the Cabinet on May 12, 2026, in order to secure further borrowing and maintain funding for essential government projects.