Thailand Cabinet Approves $37.5 Billion Borrowing for 2027

The Cabinet of Thailand approved 1.26 trillion baht ($37.5 billion) in new borrowing for the 2027 fiscal year, which begins in October. The funding plan allocates 200 billion baht specifically for energy transition projects.

To manage the borrowing, the government intends to issue up to 1.28 trillion baht in government bonds. Jindarat Viriyataveekul, head of the Public Debt Management Office, stated the government will utilize treasury bills and term loans to increase short-term borrowing while long-term bond yields remain high. The office plans to refinance this short-term debt into longer-term debt once yields decline.

This borrowing strategy is projected to push the public debt ratio to 69.7% of GDP by the end of September 2027, bringing the country close to its official ceiling of 70%. Finance Minister Ekniti Nitithanprapas expects that these investment-led policies will drive economic growth of 2.5% in 2027.