Borrowing of THB900bn allotted for infrastructure

  • The Public Debt Management Office (PDMO) plans to borrow almost THB900bn for the development of new infrastructure in 2023-2027, says director general Patricia Mongkhonvanit.
  • The borrowing plan reflects the demands of state agencies and state enterprises. The investment will focus on the infrastructure for transport, energy, utilities, and commercial space development, with an aim to upgrade living standards and Thailand’s competitiveness.
  • PDMO plans to support state and private agencies in offering green bonds, social bonds and sustainability bonds, reflecting the office’s commitment to solving environmental and social problems.
  • After evaluating state spending of THB805bn, out of THB1tr borrowed under the emergency loan decree to combat the pandemic, PDMO gave the expenditure performance an ‘A’ grade.
  • The spending generated an economic value of THB2.65tr and is expected to return THB513bn of revenue to the government.
  • During the pandemic, the government initiated two emergency loan decrees to allow it to borrow a total of THB1.5tr to mitigate the impact of Covid-19.
  • According to the PDMO, the public debt-to-GDP ratio in fiscal year 2023 is expected to edge down to 60.4% from an anticipated 60.6% in fiscal year 2022, thanks to the economic recovery.
  • GDP is expected to expand THB18.5tr in 2023 from an estimated THB17.2tr in 2022.
  • The lower debt-to-GDP forecast takes into account the government’s plan to borrow THB695bn to offset the budget deficit in fiscal year 2023.
  • The Fiscal Policy Office plans to ask the ministry to consider winding down unnecessary measures related to tax waivers and tax deductions, as next government revenue declined as a proportion of GDP.

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