Thailand plans law to borrow US$15.6 billion and lift debt ceiling, deputy PM says
The budget bill will be submitted to the Cabinet on Jun 23
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[BANGKOK] Thailand’s government plans an emergency decree to borrow 500 billion baht (S$20 billion) to address economic issues, a deputy prime minister said on Monday (Apr 20).
The move is justified by tight cash balances and rising external and environmental risks, Pakorn Nilprapunt told reporters.
Actual borrowing may be less than the full 500 billion baht, but public debt rules require the ceiling to be raised to cover the full amount specified in the law, he said. Thailand issued a similar borrowing decree during the pandemic.
Public debt currently stands at about 66 per cent of GDP, close to the existing 70 per cent ceiling, which will need to be expanded, Pakorn said.
The finance ministry will finalise the new public debt ceiling, as fiscal space has become limited, he said.
Finance Minister Ekniti Nitithanprapas said last week that the debt ceiling could be raised if needed.
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Prime Minister Anutin Charnvirakul on Monday outlined guidelines for 2027 budget preparations, signalling cuts to non-essential items and limits on budget increases to contain fiscal risks.
In November, the Cabinet approved a 3.788 trillion baht budget plan for the 2027 fiscal year that starts on Oct 1. The plan projects a 0.2 per cent rise in spending and an 8.37 per cent drop in the deficit from the current fiscal year.
The budget bill will be submitted to the Cabinet on Jun 23, before being sent to the House of Representatives for deliberation from Jul 1 to 3, according to the Budget Bureau. REUTERS
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