Thailand's cabinet on Feb. 21 approved another 81.2 billion baht ($2.35 billion) of new borrowing in the 2023 fiscal year, mostly for a state fund used to subsidize fuel costs, an official said, as the government battles high inflation.

The Oil Fuel Fund Office's borrowing plan will now increase by 80 billion baht to 110 billion baht in the fiscal year, deputy government spokesperson Traisuree Traisoranakul said in a statement.

Thailand uses the fund to support subsidies and manage oil prices in a bid to slow inflation that hit a 24-year high last year.

Borrowing by some other state enterprises will increase by 1.2 billion baht, Traisoranakul said.

The revised debt plan will see total new borrowing rising to 1.13 trillion baht ($32.69 billion) in the fiscal year ending in September, she said.

Thailand's public debt is now expected to be at 61.14% of gross domestic product (GDP) at the end of the fiscal year, still within an approved limit of 70% of GDP, she said.

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