Thailand plans to borrow approximately $66.5 billion in the fiscal year starting in October, which is a 7.6% increase from the previous year, in order to meet its funding requirements. To fulfill these increased funding needs, the government intends to borrow 2.4 trillion baht ($66.5 billion) in the upcoming fiscal year.
Government bond sales will account for half of this funding, while the remainder will come from treasury bills, savings bonds, bond switches, and promissory notes. However, concerns have arisen in Thai markets due to worries about inflation and rising interest rates, which have been exacerbated by the higher debt supply. The government aims to create a flexible and adaptable borrowing plan to accommodate new public projects.
Despite claims that the borrowing will not affect the country’s fiscal stability, as the public debt-to-GDP ratio will remain below the legal limit of 60%, some economists, analysts, opposition parties, and civil society groups have expressed concerns.
They argue that the borrowing plan will increase the fiscal burden, pose a risk of future debt distress, and question the efficiency and transparency of the government’s spending. They call for greater fiscal discipline, accountability, and criticize the borrowing plan as a populist move.
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