Finance Minister Korn Chatikanij will propose a revised public debt management plan to the Cabinet on Tuesday, a source revealed.
The Public Management Office will increase its management portfolio to Bt1.7 trillion from the previous target of Bt1.65 trillion. The domestic borrowing ceiling will be raised by Bt42 billion to Bt720.6 billion, as the fiscal reserves would be used for early redemption of bills of exchange worth Bt42 billion.
Thanks to higher-than-expected revenue, the fiscal reserves at the end of 2010 fiscal year will be Bt347.4 billion.
The ministry also plans to increase its foreign borrowing by Bt22.78 billion, in addition to the Bt99.94 billion previously planned. The new borrowing will finance extension of the Red Line mass transit train by the State Railways of Thailand. The ministry had signed loan contracts for ¥63.02 billion (Bt23.2 billion) with the Japan International Cooperation Agency in March.
Commerce Minister Porntiva Nakasai will also report to the Cabinet about her discussions with Japan's minister of economy, trade and industry last month. Her counterpart had expressed concern about the lack of progress in reducing car tax. Japan has urged Thailand to lower the tax on big cars with engine capacity of 3,000cc and up.