KASIKORNBANK Strategic Acquisition

K KASIKORNTHAI Government Fiscal Budget 1400 1200 1000 800 600 540 360 600 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Thai parliament approved FY2022 budget worth Bt3.10trn, with a deficit of Bt700bn ■ Implementation of FY2022 budget effective October 2021 ■To relieve the impact of the COVID-19 outbreak, the government approved an emergency decree allowing the Finance Ministry to borrow up to Bt500bn 400 390 700 450 609 200 450 469 163 100 0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Budget Deficit Extra-Budget Borrowing Key Points Economic Policies ■2021 Budget Act ■2022 Budget Act ■FY2021 budget at Bt3.29trn with a deficit of Bt609bn ■FY2022 budget at Bt3.10trn with a deficit of Bt700bn Implementation Process FY2021 ■ Effective date: October 7, 2020 FY2022 ■ Effective date: October 1, 2021 Possible Impacts/ Expected Budget ■Government spending will help maintain economic momentum ■Fiscal sustainability to remain manageable in near-term; however, continued debt creation, both from budget deficit and other borrowings, may impact long-term fiscal sustainability Note: Thai government's fiscal year (FY) begins on October 1 and ends on September 30 of following year - NLA = National Legislative Assembly; PPP = Public-Private Partnership Sources: The Ministry of Finance and KResearch (as of October 2021) บริการทุกระดับประทับใจ K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Public Debt to GDP and Fiscal Budget Public Debt Budget Disbursement Rate million Baht % 10,000 100 65 90 9,500 Public Debt (Ihs) % to GDP (rhs) 60 80 9,000 70 8,500 63.29 60 57.55 8,000 50 1.29 7,500 50 40 .5 37.62 7,000 30 31.73 445 23.00 6,500 20 10 6,000 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 40 40 FY 2022 FY 2021 FY 2020 Jul-21 Sep-21 Nov-21 Jan-22 Mar -22 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY22 Budget FY22 target ■■Public debt to GDP ratio rose significantly to 60.58% in March 2022. However, it is still under the 70% limit set under the fiscal sustainability framework ■Thai government raised the ceiling of the public debt-to-GDP ratio from 60% to 70%. The public debt to GDP is expected to rise to 62.69% in FY2022 Source: Ministry of Finance (MOF), Fiscal Policy Office (FPO), and Public Debt Management Office (PDMO) Total Budget Bt3.10trn ■Government budget disbursement rate for 8MFY2022 is 63.29%, up 3.58% from 59.71% in 8MFY2021 บริการทุกระดับประทับใจ 8M FY2022 actual Unused FY22 Budget Bt3.10trn (100%) B1.96trn (63%) - General Budget Bt2.49trn - Investment Budget Bt0.61trn Bt2.49trn (100%) Bt0.61trn (100%) Bt1.70trn (68%) Bt0.26trn (43%) Bt1.14trn (37%) Bt0.79trn (32%) Bt0.35trn (57%) 139 140

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