On the 20th, the Thai government announced plans to borrow approximately 500 billion baht (about 61.6 billion ringgit) through an emergency decree to cope with economic pressures brought by the energy crisis.
Deputy Prime Minister Bakom told the media that this move is due to tight cash reserves and rising external and environmental risks. The actual amount borrowed may be less than 500 billion baht.
Currently, Thailand's public debt accounts for about 66% of gross domestic product (GDP). To facilitate this round of borrowing, the Thai government is discussing raising the public debt-to-GDP ratio ceiling from the current 70% to 75%.
Bakom said that the Ministry of Finance is evaluating an appropriate ceiling, while also considering current fiscal space and future spending needs.
Meanwhile, Prime Minister Anutin outlined the guidelines for the 2027 budget formulation, hinting at cuts to non-essential projects and limiting budget growth to control fiscal risk.
The Thai government has announced a series of measures to ease the impact of rising energy prices, including cash subsidies to low-income groups, subsidies for the transportation sector, and low-interest loans for small and medium-sized enterprises.
In November last year, the Thai cabinet approved the budget plan for the 2027 fiscal year, amounting to 3.788 trillion baht. The plan projects expenditures will increase by 0.2% compared to this fiscal year, and the deficit will decrease by 8.37%.
According to the Budget Bureau, the budget proposal will be submitted to the cabinet on June 23, and then will be presented to the House of Representatives for deliberation from July 1 to 3.