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, says Public Debt Management Office (PDMO) director-general Patricia Mongkhonvanit.
Mrs Patricia said GDP is expected to expand to 18.5 trillion baht next year from an estimated 17.2 trillion in fiscal 2022.
The estimate also takes into account the government's plan to borrow 695 billion baht to offset the budget deficit in fiscal 2023.
The executive decree that took effect on Oct 5 allows the Finance Ministry to provide a guarantee loan repayment and borrowing by the Oil Fuel Fund worth up to 150 billion baht, aiming to prop up the fund’s liquidity and help it cope with rising domestic energy prices.
The debt-to-GDP ratio will surge to 61.2% if the Oil Fuel Fund borrows the full amount of 150 billion baht next year. However, the fund is unlikely to borrow the full amount as the global oil price is declining, Mrs Patricia said.
She said one challenge for the PDMO is managing debt amid rising interest rates.
Although 80% of the government's debt portfolio carries fixed interest rates, the 20% with floating rates will experience higher rates.
The government's new borrowing every year will also incur higher rates, said Mrs Patricia.
Mrs Patricia added that the PDMO plans to issue savings bonds worth 130 billion baht in the 2023 fiscal year of which 50 billion baht will be up for grab before the end of this year.