Government sets 1.2 trillion baht new borrowing under FY2026 debt plan

A Government House source revealed that the Cabinet recently approved the Public Debt Management Plan for Fiscal Year 2026, as proposed by the Public Debt Policy and Supervision Committee.

The Cabinet acknowledged the framework for formulating the plan, which is based on the government’s continued use of fiscal policy to revive and stimulate the economy through borrowing to support infrastructure investment by both the government and state enterprises, ensuring project continuity. Borrowing will also be used to enhance liquidity for state enterprises and other public agencies.

In preparing the plan, the committee took into account the Bank of Thailand’s monetary policy and domestic financial market liquidity to accommodate the borrowing needs for FY2026. It also defined a Medium-Term Debt Management Strategy (MTDS) for FY2026–2030, aligning with rising borrowing requirements and heightened market volatility.

The strategy aims to maintain public debt within appropriate cost and risk parameters, in compliance with relevant laws and regulations, including the 2018 State Fiscal and Financial Discipline Act.

The FY2026 plan comprises new borrowing totalling 1.207 trillion baht, management of existing debt amounting to 1.877 trillion baht, and debt repayments worth 503.06 billion baht.

The new borrowing plan includes 1.116 trillion baht in new government borrowing. Of this amount, 951.42 billion baht will be borrowed directly by the government, comprising:

• 860 billion baht to finance the fiscal deficit for FY2026 under the Public Debt Management Act,
• 80 billion baht carried over from the FY2025 deficit financing, for which disbursement has been extended beyond the fiscal year under Section 21 of the same Act,

and additional borrowing for projects under the Economic and Social Development Loan Programme in accordance with Sections 22 and 23 of the Public Debt Management Act.

After reviewing the proposals, the committee agreed to include investment projects from two government agencies in the FY2026 plan, with a combined budget of 11.42 billion baht. These are:

• 6.87 billion baht for projects under the Ministry of Public Health, and
• 4.55 billion baht for projects under the Department of Rural Roads.

Of the total borrowing, 51.64 billion baht will be funds that the government raises and re-lends to state enterprises.

This includes loans to the Mass Rapid Transit Authority of Thailand (MRTA) for two projects worth a combined 15.29 billion baht:

• 1.79 billion baht for the Orange Line (Cultural Centre–Min Buri [Suwinthawong] section), and
• 13.5 billion baht for the Purple Line (Tao Poon–Ratchadaphisek Ring Road section).

Another 36.35 billion baht will be lent to the State Railway of Thailand (SRT) for seven projects:

• 8.9 billion baht for the Thai–Chinese high-speed rail project (Bangkok–Nong Khai Phase 1: Bangkok–Nakhon Ratchasima),
• 450 million baht for the double-track railway (Map Kabao–Chira Junction section),
• 1.5 billion baht for the double-track railway (Nakhon Pathom–Chumphon section),
• 13 billion baht for the Den Chai–Chiang Rai–Chiang Khong railway,
• 10 billion baht for the Ban Phai–Maha Sarakham–Roi Et–Mukdahan–Nakhon Phanom railway,

 

• 1.3 billion baht for the suburban Red Line (Bang Sue–Rangsit section), and
• 1.2 billion baht for the double-track railway (Khon Kaen–Nong Khai section).

In addition, the government plans to borrow 113.52 billion baht to manage the Treasury’s cash flow, in accordance with Sections 20(1/1) and 21/1 of the Public Debt Management Act,2015 and its amendments.

In addition, the plan includes new domestic borrowing by state enterprises totalling 89.95 billion baht across 16 state enterprises.

Investment loans – 39.81 billion baht

Eleven state enterprises will borrow a combined 39.81 billion baht to finance development projects, consisting of:

• 2.59 billion baht in government-guaranteed loans, and
• 36.91 billion baht in non-guaranteed loans.

Breakdown by agency:

• State Railway of Thailand (SRT): 880 million baht
• National Housing Authority (NHA): 700 million baht
• Metropolitan Electricity Authority (MEA): 6.6 billion baht
• Electricity Generating Authority of Thailand (EGAT): 5 billion baht
• Provincial Electricity Authority (PEA): 10 billion baht
• Expressway Authority of Thailand (EXAT): 2.19 billion baht
• Metropolitan Waterworks Authority (MWA): 6.3 billion baht
• Provincial Waterworks Authority (PWA): 970 million baht
• Dhanarak Asset Development Co., Ltd. (DAD): —
• District Cooling and Power Co., Ltd. (DCAP): 1.43 billion baht
• Port Authority of Thailand (PAT): 4.43 billion baht

Working-capital and operational loans – 50.15 billion baht

Eleven state enterprises will also take out loans totalling 50.15 billion baht for general operations or working capital. Of this,

• 27.51 billion baht will be government-guaranteed, and
• 22.64 billion baht will be non-guaranteed.

Breakdown by agency:

• National Housing Authority (NHA): 1.94 billion baht
• Metropolitan Electricity Authority (MEA): 3.5 billion baht
• Provincial Electricity Authority (PEA): 10 billion baht
• State Railway of Thailand (SRT): 18 billion baht
• Dhanarak Asset Development Co., Ltd. (DAD): 2.93 billion baht
• District Cooling and Power Co., Ltd. (DCAP): 115.34 million baht
• PEA ENCOM International Co., Ltd.: 500 million baht
• Bangkok Dock Co., Ltd.: 1.15 billion baht
• Government Pawnshop Office: 2.5 billion baht
• Bangkok Mass Transit Authority (BMTA): 9.11 billion baht
• Dairy Farming Promotion Organisation of Thailand (DPO): 400 million baht

The plan also includes new domestic borrowing by one other public agency, the Neighbouring Countries Economic Development Cooperation Agency (Public Organisation), or NEDA, which will borrow 871.34 million baht under a non-guaranteed loan by the Ministry of Finance.

The Cabinet has also acknowledged the preparation of a five-year medium-term borrowing plan for Fiscal Years 2026–2030, which serves as a framework for managing public debt over the medium term.

The plan covers a total of 141 investment projects, with a combined investment value of 710.60 billion baht, spanning the transportation, energy, utilities, and other sectors. Compared with the previous five-year borrowing plan—which included 108 projects with a total investment value of 776.05 billion baht—the new plan adds 33 projects while reducing the total investment value by 65.44 billion baht.

The Public Debt Policy and Supervision Committee has instructed relevant agencies to accelerate the implementation and disbursement of delayed infrastructure projects to help boost public investment and support economic momentum in the coming years.