Thai Cabinet approves ฿18 billion borrowing for state railway
The Finance Ministry will guarantee the funding, intended to support railway operations in fiscal 2027 after a cash shortfall in fiscal 2026.
Thailand’s Cabinet authorised the State Railway of Thailand (SRT) on November 3 to borrow ฿18 billion for fiscal 2027 operating needs. The government said the money would provide working capital as the operator struggles with insufficient revenue.
SRT recorded a ฿18 billion cash shortfall in fiscal 2026, with outgoings exceeding receipts. Its continuing losses come alongside costs for train services, infrastructure upkeep, repairs to buildings and trains, pensions and debt payments.
Deputy government spokesperson Ploythalay Laksamisaengchan said the Transport Ministry submitted the proposal with approval from Deputy Prime Minister Phiphat Ratchakitprakarn.
The Finance Ministry will select funding sources and set the financing terms, as well as guarantee the borrowing. SRT must repay the principal and interest and cover any related borrowing expenses. The financing remains subject to public debt management procedures.
The Public Debt Management Office, with the Finance Minister’s approval, reviewed the plan alongside the Budget Bureau and the National Economic and Social Development Council. None raised objections. The Cabinet also told SRT to comply with legal and administrative requirements should it seek a borrowing-fee exemption.
