Key facts
- Thailand's cabinet approved 1.26 trillion baht ($37.5 billion) in new borrowing for the 2027 fiscal year.
- The country's public debt ratio is projected to reach 69.7% of GDP by the end of fiscal year 2027.
- The new borrowing plan includes 200 billion baht for energy transition projects.
- The government plans to issue up to 1.28 trillion baht of government bonds during the fiscal year.
- The government's average borrowing cost is around 2.6% and is expected to remain unchanged.
Thailand's cabinet has approved 1.26 trillion baht ($37.5 billion) in new borrowing for the 2027 fiscal year, which begins in October. The finance ministry stated that the country's public debt ratio is projected to reach 69.7% of GDP by the end of fiscal year 2027, close to the official ceiling of 70%.
The new borrowing plan includes 200 billion baht for energy transition projects under a broader borrowing decree, according to the ministry. Jindarat Viriyataveekul, head of the Public Debt Management Office, told reporters that the government plans to issue up to 1.28 trillion baht of government bonds during the fiscal year. She added that the government plans to increase short-term borrowing using instruments like treasury bills and term loans while long-term bond yields remain elevated. The government will refinance shorter-term borrowing into longer-term debt once long-term bond yields decline, she said, noting that higher yields would not affect government borrowing costs.
The government's average borrowing cost is currently around 2.6% and is expected to remain unchanged in the coming fiscal year, according to Viriyataveekul. Finance Minister Ekniti Nitithanprapas told Reuters last week that he expects the economy to grow 2.5% in 2027, driven by investment-led policies.