The government plans to borrow about 2.4 trillion baht for the 2024 fiscal year starting on Oct 1, up about 9% from the current year, according to market sources briefed by the Ministry of Finance.
More than 700 billion baht of the total will be fresh borrowing to finance the budget deficit, said the people who are not authorised to discuss the information before it is made public. Roughly 1.7 trillion baht has been earmarked for refinancing and to restructure existing debt, they added.
About half of the funding sought will be raised through government bond sales, while the rest will be financed via treasury bills, savings bonds, bond switches and promissory notes, according to the people.
Authorities plan to sell up to 272 billion baht worth of government bonds in the October-December period, said three sources with knowledge of the bond plan, who participated in a virtual meeting that took place on Tuesday.
Asked about the plan, the ministry’s Public Debt Management Office earlier on Wednesday did not provide details but said a quarterly schedule for bond auctions would be released next week.
The sources, who declined to be identified because the information was not public, said the government also planned to sell 180 billion baht in treasury bills in the fourth quarter of 2023.
The bond plan comes as the new Pheu Thai-led government, which took office last month, chalks out fresh policies to stimulate a sluggish economy weighed down by soft demand for exports and low investor confidence.
This week, the new cabinet approved higher budget spending of 3.48 trillion baht for fiscal year 2024, along with a budget deficit of 693 billion baht, 14% higher than the deficit envisioned in the fiscal 2024 budget passed by the previous government.