Oil Fuel Fund /Anucha Buraphachaisri

Chatrudee Theparat

New borrowing of 150 billion baht till 2023 to secure the role of the Oil Fuel Fund

The cabinet has endorsed a borrowing plan for the Oil Fuel Fund, with 150 billion baht in total to secure the fund’s role amid a rise in petrol price.

Government spokesman Anucha Buraphachaisri said the first amount of 30 billion baht is borrowed between this December 2022 and February 2023 and 120 billion-baht will be between February and July 2023.

Government spokesman Anucha Buraphachaisri

In addition, he said the cabinet on August 16 this year approved the draft executive decree, which agreed to allow the finance ministry to guarantee a debt repayment program by the Oil Fuel Fund, as well as its loan of 150 billion baht.

He said an executive decreed is needed in order to allow the Finance Ministry to guarantee a loan of 150 billion-baht for the Oil Fuel Fund. The fund will repay its debt within seven years. To do so, the government is worried about the prolonged war between Ukraine and Russia would send an impact on the global oil price.

As of October 16, the Oil Fuel Fund contracted about 125 billion baht, while an expenditure was higher than its daily income of 222 million baht collected, or 6.88 billion baht a month, as of October 20

Separately, the cabinet approved a draft of five-year development plan for 52 state- owned enterprises spanning 2023-2027 with total investment 2.9 trillion baht.

Finance Minister Arkhom Termpittayapaisith said the plan is a framework for the development among state-owned enterprises in order to stay in line with the country’s national strategy plan and the 13the National Economic and Social Development Plan.

The draft plan covers 184 projects worth 2.9 trillion baht, with infrastructure projects such as dual track railroads, highways, airports, deep seaports, logistics, power plants, charging stations for electrical vehicles and research &development for upgrading efficiency among small and medium enterprises.

Increasing value in farm products of large-scale farms and the capability of state-owned enterprises are under its plan to help produce an average profit growth of 5% annually, as well as an effort to make an increase of 15% in profit a year among smart farmers and a 5% in revenue among farmers who participate the projects.

For the tourism industry, the related state-owned enterprises are required to play a role in helping drive the foreign tourist spending of 5% and of 7% in domestic tourism spending.

The cabinet also agreed with the Interior Ministry, with new regulation allowing four wealthy groups to purchase one rai of land for their residences with a requirement of investment 40 million baht for three years. Its enforcement takes five years.