The Public Debt Management Office (PDMO) plans to borrow almost 900 billion baht for the development of new infrastructure in 2023-2027, says director-general Patricia Mongkhonvanit.
The borrowing plan reflects the demands of state agencies and state enterprises. The investment will focus on the infrastructure of transport, energy, utilities, and commercial space development, with an aim to upgrade living standards and Thailand's competitiveness, said Mrs Patricia.
The office will use a mid-term debt management strategy and diversified instruments to contain public debt at the appropriate cost and risk levels, she said. This will assure related local and international parties that Thai public financing remains strong, Mrs Patricia said.
PDMO plans to support state and private agencies in offering green bonds, social bonds and sustainability bonds, reflecting the office's commitment to solving environmental and social problems, she said.
After evaluating state spending of 805 billion baht, out of 1 trillion baht borrowed under the emergency loan decree to combat the pandemic, PDMO gave the expenditure performance an "A" grade. The assessment was based on an evaluation framework from the Organisation for Economic Co-operation and Development and the Japan International Cooperation Agency.
The spending generated an economic value of 2.65 trillion baht and is expected to return 513 billion baht of revenue to the government.
During the pandemic the government initiated two emergency loan decrees to allow it to borrow a total of 1.5 trillion baht to mitigate the impact of Covid-19.
According to PDMO, the public debt-to-GDP ratio in fiscal 2023 is expected to edge down to 60.4% from an anticipated 60.6% in fiscal 2022, thanks to the economic recovery. GDP is expected to expand to 18.5 trillion baht next year from an estimated 17.2 trillion in fiscal 2022.
The lower debt-to-GDP forecast takes into account the government's plan to borrow 695 billion baht to offset the budget deficit in fiscal 2023.
Earlier this month, a Finance Ministry source who requested anonymity said the Fiscal Policy Office (FPO) plans to ask the ministry to consider winding down unnecessary measures related to tax waivers and tax deductions, as net government revenue declined as a proportion of GDP. According to the FPO's report on fiscal risk as of August, net government revenue as a proportion of GDP is expected to fall from 14.6% in fiscal 2021 to 13.3% in fiscal 2026.
The government should keep only necessary tax waivers and tax breaks, while seeking ways to broaden the tax base, the source said.
