Debt to grow as govt sets 5-year financial plan
The government has approved a mid-term financial plan for fiscal 2024-2029 with estimated average gross domestic product (GDP) growth at 5.3% annually, said a news source familiar with the matter on Thursday.
The plan was approved at a meeting on Thursday at the Ministry of Finance in Bangkok, in a session chaired by Prime Minister and Finance Minister Srettha Thaksin.
According to the source, the approved plan aims to run a deficit expenditure budget continually until 2029 in a bid to boost the country’s economic expansion. Under the plan, the GDP growth is estimated at an average rate of 5.3% per year, or from 19 trillion baht in 2024 to 24.6 trillion baht in 2029.
The government will also aim to reduce the level of deficit by 0.2% per year by reducing government expenditures by approximately 10 billion baht annually.
The plan also predicts that the ratio of public debt per GDP will peak in fiscal 2026 at 64.23%, and then gradually drop to 63.61% in 2028 and 62.98% in 2029.
Financial Breakdown from 2024-2029
2024: Revenues 2.78 trillion baht, expenses 3.48 trillion baht (a 693-billion-baht deficit or 3.64% of GDP), loan maximum 790.58 billion baht
2025: Revenues 2.88 trillion baht, expenses 3.6 trillion baht (a 713-billion-baht deficit or 3.56% of GDP), loan maximum 820.8 billion baht
2026: Revenues 3.04 trillion baht, expenses 3.74 trillion baht (a 703-billion-baht deficit or 3.33% of GDP), loan maximum 853.4 billion baht
2027: Revenues 3.2 trillion baht, expenses 3.89 trillion baht (a 693-billion-baht deficit or 3.11% of GDP), loan maximum 888.51 billion baht
2028: Revenues 3.39 trillion baht, expenses 4.07 trillion baht (a 683-billion-baht deficit or 2.92% of GDP), loan maximum 929.55 billion baht
2029: Revenues 3.57 trillion baht, expenses 4.24 trillion baht (a 673-billion-baht deficit or 2.73% of GDP), loan maximum 967.63 billion baht
Estimated GDP expansion under the plan:
2024: 5.4% growth to 19.02 trillion baht
2025: 5.4% growth to 20.04 trillion baht
2026: 5.3% growth to 21.11 trillion baht
2027: 5.4% growth to 22.25 trillion baht
2028: 5.2% growth to 23.4 trillion baht
2029: 5.2% growth to 24.62 trillion baht
Estimated public debt under the plan:
2024: 11.83 trillion baht (62.71% of GDP)
2025: 12.66 trillion baht (63.73%)
2026: 13.44 trillion baht (64.23%)
2027: 14.12 trillion baht (64.07%)
2028: 14.75 trillion baht (63.61%)
2029: 15.37 trillion baht (62.98%)
