Thailand’s cabinet has approved new borrowing worth US$5.3 billion for the 2024 fiscal year starting on Oct 1, mainly to finance a budget deficit, a government spokesperson said on Tuesday (Sep 26).

The borrowing is part of a wider debt management plan for the fiscal year, which also includes the restructuring of existing debt of 1.62 trillion baht (S$60.9 billion) and debt repayments of 390 billion baht, Chai Wacharonke told a briefing.

The new borrowing will also be for infrastructure development projects, Chai said.

The cabinet has also approved 500 billion baht worth of investment from state-owned companies.

The government, which took office last month, is preparing new policies, including a digital wallet handout worth 560 billion baht, to stimulate a sluggish economy weighed down by weak exports and low investor confidence.

The debt plan, however, could be revised as the government is still preparing the 2024 fiscal budget, which projects higher spending of 3.48 trillion baht for fiscal year 2024, and a budget deficit of 693 billion baht.

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Markets sources briefed by the finance ministry this month said the government planned new borrowing of more than 700 billion baht for the fiscal year. REUTERS