FINANCE

State enterprises will need to revise their three-year investment plan (2013-15) that calls for borrowing 726.46 billion baht in order to follow government policy to use more local funds.

The Strategic Committee for Reconstruction and Future Development chaired by Virabongsa Ramangkura will propose that the cabinet require state enterprises to reduce planned borrowing from abroad.

Both the government and state enterprises play a significant role in stimulating the economy through their investments, said Arkhom Termpittayapaisith, the secretary-general to the National Economic and Social Development Board (NESDB).

In the 2012 fiscal year that ended on Sept 30 last year, the government's borrowing was 846.37 billion baht, of which 815.37 billion was from domestic sources and 31 billion from abroad. State enterprises borrowed 278.9 billion baht, out of a total of 614.92 billion budgeted for investments.

The next three-year plan for state enterprises calls for borrowing of 242.10 billion baht a year, comprising 72% domestic funding and 28% from abroad.

The NESDB said public debt at the end of fiscal 2012 was 2.26 trillion baht, or 48.7% of gross domestic product, up from 42.2% of GDP in fiscal 2011.