The government plans to increase borrowing by 8% to about 2.6 trillion baht (US$78.2 billion) for the 2025 fiscal year starting on Oct 1, according to three market sources and a government presentation seen by Reuters.
Of the projected total, 1.06 trillion baht will be new borrowing and 1.53 trillion will be debt being rolled over, according to the sources, who declined to be identified because the information was not public.
The government plans to sell about 1.25 trillion baht of government bonds and 520 billion baht of treasury bills in the 2025 fiscal year, which will fund more than two-thirds of the borrowing target, the sources said.
Asked about the debt figures, Jindarat Viriyataveekul, public debt advisor at the Ministry of Finance, told Reuters that "they're just like that".
The Public Debt Policy and Supervision Committee would have a meeting on the debt plan on Wednesday, she added.
The plan comes as the government of Prime Minister Paetongtarn Shinawatra lines up policies, headlined by its signature digital wallet handout scheme, to jumpstart Southeast Asia's second-largest economy.
The government plans to sell between 303 billion baht to 322 billion baht, including 15-year sustainability-linked bonds, in the October-December quarter, the sources said.
The borrowing plans will also be financed by 120 billion baht of savings bonds, 140 billion baht of bond switching and 556 billion baht of promissory notes and term loans, the sources said.
The higher borrowing plan was due to a bigger budget deficit for the 2025 fiscal year to support government measures, including the 'digital wallet' scheme, the sources said.
The government's 2025 fiscal budget projects spending of 3.75 trillion baht and a 7.5% rise in the deficit to about 8.66 billion baht.
Newly appointed Prime Minister Paetongtarn Shinawatra pays homage to a shrine at the parliament, Bangkok, on Sept 12, 2024. (Photo: Apichart Jinakul)
Thailand's local bonds have handed dollar-based investors a 7% return this year, outperforming most emerging-market peers. The baht also trumped most EM currencies, rising almost 3% against the greenback.
The youngest daughter of influential former leader Thaksin Shinawatra was elected prime minister by parliament last month after her predecessor Srettha Thavisin was dismissed by a court over an ethical violation.
