(Bloomberg) -- Thailand’s government pledged to ensure its $78 billion borrowing plan in the next fiscal year won’t crowd out the private sector.
The government plans to raise its borrowing in the fiscal year starting October to 2.59 trillion baht ($78 billion), the Ministry of Finance’s Public Debt Advisor Jindarat Viriyataveekul told reporters in Bangkok on Wednesday. Bloomberg News earlier reported the data.
About 1.1 trillion baht will be fresh borrowing to mainly finance the budget deficit, while the rest has been earmarked for the refinancing and restructuring of existing debt, she said.
Newly-appointed Prime Minister Paetongtarn Shinawatra’s government is raising the budget for the 2025 fiscal year to $112 billion to boost growth. Southeast Asia’s second-largest economy is facing near record-high household debt, sluggish exports and a manufacturing sector weakened by cheap imports, mainly from China.
Read: Thai Cabinet Approves $4.4 Billion Cash Handout to Spur Economy
The borrowing plan includes 1.25 trillion baht of sovereign bonds, 140 billion baht via bond switching, 520 billion baht of Treasury bills, and 120 billion baht of savings bonds. Promissory notes and term loans may make up the rest.
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