Thai Public Broadcasting Service (Thai PBS)i
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Cabinet approves new 1.26-trillion-baht borrowing plan, public debt to hit 69.7% of GDP
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The Cabinet on September 29, 2026 approved the public debt management plan for fiscal year 2027, which includes 1.26 trillion baht in new government borrowing. This breaks down into 1.18 trillion baht in new borrowing by the government, 81,465 million baht by state enterprises, and 850 million baht by other agencies. For the government portion, direct borrowing includes 788,000 million baht to cover the fiscal 2027 budget deficit, 60,000 million baht to cover the fiscal 2026 deficit carried over into the new year, and 12,359 million baht for the economic and social development loan program. Meanwhile, on-lending by the government totals 63,038 million baht, comprising 10,653 million baht on-lent to the Mass Rapid Transit Authority of Thailand for five projects and 52,385 million baht on-lent to the State Railway of Thailand for eight projects. The highlight is 200,000 million baht in borrowing to fund projects under the 2026 emergency decree authorizing the Ministry of Finance to borrow to address the energy crisis and drive the energy transition, plus 56,820 million baht in borrowing to manage treasury liquidity. A source at the Ministry of Finance said the plan will push public debt at the end of fiscal 2027 to 69.7% of GDP, still below the 70% ceiling but considered close to the limit, and that if oil prices rise enough to require another emergency decree guaranteeing loans for the Oil Fuel Fund, that would also pose a risk. Former Finance Minister Korn Chatikavanij warned that Thailand risks falling into a trap of fiscal discipline law and public debt if spending rises while tax revenue grows slowly. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said a conclusion on the automobile excise tax should be reached within one to two weeks. Also under discussion is an exit tax on travel abroad, which at 1,000 baht per person would generate an additional 12,000 million baht a year in revenue, and the plan to end the Earmarked Tax system for Thai PBS, the Thai Health Promotion Foundation, the National Sports Development Fund, and the Elderly Fund, which is expected to return no less than 10,000 million baht a year to the treasury.