Thailand plans new borrowing of 614 billion baht ($17.74 billion) in the fiscal year starting October 1, to finance the budget deficit and investment projects, a senior finance ministry official said on Wednesday. Of the total, 390 billion baht will be for the budget gap and the rest for investment, Theeraj Athanavanich, deputy head of the Public Debt Management Office, told reporters.
It is part of a wider debt management plan worth 1.56 trillion baht for the fiscal year, which will be proposed to the cabinet on Tuesday, Theeraj said.
Under the plan, some 945 billion baht is existing debt, which will be rolled over and refinanced, he said.
The new borrowing compares with about 638 billion baht planned for the current year.
In the 2017 fiscal year, the government plans to issue savings bonds worth about 50 billion baht, the same as in the current year, Theeraj said.
The ministry expects public debt to be 45.5 percent of gross domestic product in the 2017 fiscal year, up from 44.2 percent projected for the current one, he said.
The 2017 budget gap is the same amount as the current year as the junta has struggled to revive the economy since seizing power in May 2014 to end months of street protests, with exports and domestic demand weak.
On Tuesday, the cabinet approved laws to boost Thailand's competitiveness by offering tax breaks, including a tax exemption of 13 years for businesses using high technology and innovation.