Thailand Cabinet Approves $37.5 Billion Borrowing for FY2027, Public Debt to Near 70% Ceiling

Thailand's cabinet approved 1.26 trillion baht ($37.5 billion) in new borrowing for fiscal year 2027, which begins October 2026, the finance ministry said on September 29, 2026. The public debt ratio is projected to reach 69.7% of GDP by the end of the fiscal year ending September 2027, close to the official 70% ceiling. The borrowing plan includes 200 billion baht for energy transition projects. The government plans to issue up to 1.28 trillion baht in government bonds during the fiscal year, said Jindarat Viriyataveekul, head of the Public Debt Management Office. The government will increase short-term borrowing using treasury bills and term loans while long-term bond yields remain elevated, then refinance into longer-term debt once yields decline, Jindarat said. The average borrowing cost stands at about 2.6% and is expected to hold steady next fiscal year. Finance Minister Ekniti Nitithanprapas expects the economy to grow 2.5% in 2027, driven by investment-led policies. ($1 = 33.57 baht)