Thailand will borrow $46 billion next year as the Southeast Asian nation expands its fiscal stimulus measures to counter the economic impact from the coronavirus pandemic amid dwindling state revenue.
A cabinet meeting chaired by Prime Minister Prayuth Chan-Ocha on Tuesday approved borrowing of 1.47 trillion baht in the fiscal year starting Oct. 1, according to a government statement Tuesday.
The fund-raising is seen down 11 per cent from a revised 1.66 trillion baht this year, official data show. The borrowing will be used to finance various economic stimulus programs, budget deficit, infrastructure investments and bailout of some pandemic-hit state enterprises, the government said.
The public debt-to-GDP ratio will widen to 57.23 per cent in 2020-21, near the legal limit of 60 per cent, it said.
Thailand’s government and the central bank jointly unveiled a 1.9 trillion baht stimulus early this year to cushion the blow from the pandemic but has so far spent only about a third of the amount.
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