Cabinet approves new borrowing plan for fiscal 2027 worth 1.26 trillion baht
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The Cabinet meeting approved the public debt management plan for fiscal year 2027, comprising new borrowing of 1.26 trillion baht. This consists of the government's new borrowing plan of 1.18 trillion baht, divided into 860 billion baht borrowed directly by the government, 63 billion baht borrowed by the government for on-lending, 200 billion baht in loans under the emergency decree on borrowing to address the energy crisis, and 56.8 billion baht in loans to manage liquidity of the treasury reserve. The remainder consists of new borrowing plans of 14 state enterprises totaling 81.4 billion baht and of other government agencies totaling 850 million baht. Jindarat Viriyataveekul, Director-General of the Public Debt Management Office, disclosed that the debt management plan stands at 1.91 trillion baht, divided into the government's existing debt management plan of 1.83 trillion baht and that of state enterprises of 85.2 billion baht, while the debt repayment plan stands at 580 billion baht. It is estimated that the public debt ratio will be 69.7% of GDP, which remains within the public debt ceiling framework of not more than 70% of GDP, from the end of fiscal year 2026 when it is expected to be more than 68% of GDP, and according to the medium-term fiscal plan, the public debt ratio is expected to peak in fiscal year 2028 at around 69%. As for progress on borrowing under the emergency decree on borrowing to address the energy crisis, with a total amount of 400 billion baht, 193 billion baht has already been disbursed from the first tranche of 200 billion baht, with loans secured to support spending under the Thai Help Thai Plus Phase 2 project. As for spending the second tranche of 200 billion baht for the country's energy transition, the screening committee for loan spending, chaired by Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, has considered the criteria for projects but has not yet considered the projects themselves. The projects awaiting submission include the project to support rooftop solar installation for the public by the Ministry of Interior, the project to transition public buses to EVs by the Ministry of Transport, and the project to upskill and reskill workers for the energy transition. Agencies can still submit projects until September 30 this year and disburse funds until December 31, 2027. Energy transition projects are expected to gradually emerge around October this year.