Thailand’s cabinet approved 1.26 trillion baht ($37.5 billion) in new borrowing for the 2027 fiscal year, which begins in October, the finance ministry said. The borrowing plan includes 200 billion baht for energy-transition projects under a broader borrowing decree. Public debt is projected to reach 69.7% of GDP by the end of the fiscal year ending September 2027, just below the official 70% ceiling. The government plans to issue up to 1.28 trillion baht in government bonds during the year. Jindarat Viriyataveekul, head of the Public Debt Management Office, said Thailand would increase short-term borrowing through instruments including treasury bills (short-term government debt) and term loans while long-term bond yields remain elevated. The government plans to refinance that shorter-term borrowing into longer-term debt if long-term yields decline. Jindarat said higher yields would not affect government borrowing costs, which currently average about 2.6% and are expected to remain unchanged in the coming fiscal year. Finance Minister Ekniti Nitithanprapas told Reuters last week that he expected the economy to grow 2.5% in 2027, supported by investment-led policies.