Bangkok: The Cabinet approved the revised public debt management plan for fiscal year 2026, increasing the debt repayment amount by 30,469 million baht, bringing the current public debt to 68.48 percent. Ms. Airin Phanrit, Deputy Spokesperson for the Prime Minister's Office, revealed the details of the approved plan, which includes significant adjustments to borrowing and debt repayment strategies.
According to Thai News Agency, the Cabinet's approval of the revised Public Debt Management Plan for Fiscal Year 2026 involves a net increase of 52,076 million baht in the new borrowing plan, elevating it from 1,207,306 million baht to 1,259,382 million baht. Additionally, the debt repayment plan will see a net increase of 30,469 million baht, rising from 503,056 million baht to 533,526 million baht. The revised public debt-to-GDP ratio is anticipated to be 68.48 percent, which remains within the legal and regulatory framework, not exceeding the 70 percent limit.
The Cabinet has also sanctioned the inclusion of development and investment projects that will empower the State Railway of Thailand (SRT) to borrow and manage debt under the revised 2026 fiscal year plan. To facilitate the progress of eight SRT high-speed rail, double-track, and suburban electric rail projects, domestic borrowing was increased by 33,222 million baht. This funding is aimed at supporting projects totaling 28,920 million baht, alongside loans for investment in Port Authority of Thailand development projects. Foreign borrowing was augmented by 18,853 million baht to finance initiatives such as the construction of a 3 GeV synchrotron light source and laboratory, costing 12,359 million baht, and the low-carbon city and carbon market development project, with an allocation of 6,494 million baht.
Furthermore, the plan includes adjustments to the debt repayment plan of the Financial Institutions Development Fund (FIDF) by 35,486 million baht. There is a reduction in the amount of government loan restructuring set to mature in 2026 by 226,972 million baht. Additionally, there is an increase in the allocation for managing the risk of government loans maturing during fiscal years 2027-2030. This strategic move is intended to diversify the debt burden and support future government bond issuance.