Cabinet approves new borrowing for fiscal 2024

According to the Prime Minister’s office spokesman Chai Watcharong, the approved Public Debt Management Plan for fiscal 2024 is as follows:

1. New borrowing plan, total 194.43 billion baht.

2. Existing debt management plan, 1.62 trillion baht.

3. Debt repayment plan, 390.54 billion baht.

The key points of the plan for the fiscal year 2024 are:

1. New borrowing plan, which includes:

-Government borrowing, mainly to compensate for the budget deficit in 2023, with a delayed repayment extending beyond the fiscal year-end, totalling 40 billion baht.

-Borrowing for infrastructure development projects and enhancing the country's competitiveness.

2. Existing debt management plan, mainly aimed at restructuring existing debt due in the 2024 budget year.

3. Debt repayment plan, including government debt, state enterprise debt, and agency debt from the 2024 budget, totalling 336.81 billion baht, and debt repayment from other sources, totalling 53.73 billion baht.

The plan for fiscal year 2024 includes four state enterprises, namely the National Housing Authority, Dhanarak Asset Development, the State Railway of Thailand (SRT) and the Bangkok Mass Transit Authority (BMTA)

These state enterprises have a debt-to-revenue ratio of less than 1 and can borrow and manage debt under the plan for fiscal year 2024.

The SRT and BMTA need to expedite the implementation of their business recovery plans to increase revenue sufficient for debt repayment. They are also requested to report progress and challenges in implementing their business recovery plans to the Public Debt Management Policy Committee for further action.

The estimated public debt-to-gross domestic product (GDP) ratio as of the end of fiscal 2024, based on the actions outlined in this plan, will remain within the framework set by the State Finance and Fiscal Policy Committee, not exceeding 70%.