The government plans an emergency decree to borrow 500 billion baht to address economic issues, Deputy Prime Minister Pakorn Nilprapunt said on Monday.
The move is justified by tight cash balances and rising external and environmental risks, he 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.
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Thailand issued a similar borrowing decree during the pandemic.
Public debt currently stands at about 66% of GDP, close to the existing 70% ceiling, which will need to be expanded, Mr 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 the debt ceiling could be raised if needed.
Prime Minister Anutin Charnvirakul on Monday outlined guidelines for 2027 budget preparations, signalling cuts to
non-essential itemsand 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% rise in spending and an 8.37% drop in the deficit from the current fiscal year.
The budget bill will be submitted to the cabinet on June 23, before being sent to the House of Representatives for deliberation from July 1 to 3, according to the Budget Bureau.