Photo Credit: Pattarapong Chatpattarasill
The cabinet has authorized a proposal from the Ministry of Transport for the State Railway of Thailand (SRT) to borrow 18 billion baht during the 2026 fiscal year to cover operational costs amid ongoing financial deficits.
The proposal was put forward following reports from the SRT indicating that its revenue is insufficient to cover its expenses. The funds are intended to improve liquidity and ensure the agency can operate smoothly throughout the fiscal year, which began on October 1, according to government spokesperson Siripong Angkasakulkiat on Tuesday.
The SRT has consistently experienced losses, largely due to substantial financial commitments such as interest payments and loan servicing, Siripong explained. A significant portion of its income must also be allocated to infrastructure maintenance, including track foundations, rails, bridges, signalling systems, safety barriers, and lighting across the country.
Furthermore, the SRT faces high costs for maintaining aging assets, including stations and rolling stock, which require frequent repairs. Pension obligations also contribute significantly to the accumulating debt, which has now reached 300 billion baht.
Because of these financial pressures, the SRT’s expenses have consistently exceeded its income, resulting in a cash deficit of 18 billion baht. The approved loan aims to alleviate liquidity issues and provide working capital to support ongoing operations.