KBank's Strategic Acquisition in Muang Thai Group Holding slide image

KBank's Strategic Acquisition in Muang Thai Group Holding

K KASIKORNTHAI Government Fiscal Budget 1400 1200 1000 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■Thai parliament approved FY2023 budget worth Bt3.18trn, with a deficit of Bt695bn ■Implementation of FY2023 budget effective October 2022 600 540 360 الاس 800 600 400 390 700 695 450 609 200 450 469 163 100 0 FY2017 FY2018 FY2019 FY2020 FY2022 FY2023 Budget Deficit Economic Policies ■2022 Budget Act ■2023 Budget Act FY2021 Extra-Budget Borrowing Key Points ■FY2022 budget at Bt3.10trn with a deficit of Bt700bn ■FY2023 budget at Bt3.18trn with a deficit of Bt695bn Implementation Process FY2022 ■ Effective date: October 1, 2021 FY2023 ■ Effective date: October 1, 2022 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 Sources: The Ministry of Finance and KResearch (as of October 2022) บริการทุกระดับประทับใจ K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Public Debt to GDP and Fiscal Budget Public Debt Budget Disbursement Rate million Baht 11,000 10,500 10,000 9,500 9,000 8,500 8,000 7,500 7,000 6,500 6,000 (%) % 70 100 55 90 65 80 60 60 70 59.9 60 53.1 55 45.3 50 37.7 50 40 50 30.0 30 22.7 45 45 15.0 20 Jan-17 Mar-17 May-17 -inc Sep- Nov- Sep-19 Public Debt (lhs) May-2 Sep-20 Jan- Mar-2 May-2 Jul-21 % to GDP (rhs) Sep-21 Nov-2 Jan-2 Mar-22 Jun -22 ■■Public debt to GDP ratio rose to 61.2% in March Aug-22 Oct-22 Dec-22 Feb-23 2023. 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 60.43% in FY2023 Source: Ministry of Finance (MOF), Fiscal Policy Office (FPO), and Public Debt Management Office (PDMO) 40 40 FY 2023 FY 2022 10 ⚫FY 2021 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY23 Budget FY23 target Bt3.18trn (100%) Bt2.52trn (100%) Bt0.66trn (100%) 7M FY23 actual Unused FY23 Budget B1.90trn (60%) Bt1.65trn (65%) Bt0.26rn (40%) Bt1.28rn (40%) Bt0.87trn (35%) Bt0.40trn (60%) Total Budget Bt3.18trn - General Budget Bt2.52trn - Investment Budget Bt0.66trn ■Government budget disbursement rate for 7MFY2023 is 59.9%, up 2.3% from 57.6% in 7MFY2022 บริการทุกระดับประทับใจ 133 134
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