Six governments, five crises: Thailand weighs emergency borrowing decree

Thailand is considering issuing an emergency decree authorising the Finance Ministry to borrow THB500 billion as the government braces for twin threats from soaring energy costs and a looming super El Niño.

The prolonged conflict in the Middle East, which has continued since February 28, 2026, has pushed up global energy prices and is expected to affect Thailand’s economy and inflation this year. Against that backdrop, the government has begun weighing the use of an emergency borrowing decree to prepare for both the energy crisis and climate-related disruptions.

Deputy Prime Minister Pakorn Nilprapunt said on April 20, 2026 that the government was considering issuing a decree to empower the Finance Ministry to raise THB500 billion to prepare for what he described as overlapping crises: the energy shock and super El Niño.

He said the move would fall under the government’s powers under Section 172 of the Constitution, which allows an emergency decree to be issued in urgent and necessary circumstances relating to national security or the economy. Once issued, the government must submit it to the House of Representatives at the earliest possible opportunity.

According to Pakorn, the use of an emergency decree is being considered because the situation is both urgent and exceptional, while the state’s cash position is relatively limited and tight.

At the same time, Thailand is facing rising risks from hard-to-predict external factors, including war and super El Niño, both of which could hit agricultural output and the wider economy. The government therefore needs to prepare budgetary capacity to respond to emergencies.

Over the years, emergency borrowing laws have repeatedly been used by Thai governments as a tool to confront major national crises. If the current administration under Prime Minister Anutin Charnvirakul proceeds with the plan, it would become the sixth government in nearly 30 years to rely on special borrowing powers to deal with a major emergency.

The pattern spans five major crises and six governments:

1. Chuan Leekpai government

The Chuan administration issued two emergency borrowing decrees worth a combined THB800 billion.

• The first, the 1998 emergency decree authorising the Finance Ministry to borrow for assistance to the Financial Institutions Development Fund, was worth THB500 billion. It was enacted after the Tom Yum Kung financial crisis to restore the financial system, which lay at the heart of the economic collapse, and to prevent further damage.
• The second, also issued in 1998, authorised THB300 billion in borrowing to strengthen the stability of the financial system and prevent still-operating commercial banks from collapsing.

2. Thaksin Shinawatra government

The Thaksin administration issued one emergency borrowing decree.

• The 2002 decree authorised the Finance Ministry to borrow and manage loans worth THB780 billion to support the second phase of assistance to the Financial Institutions Development Fund. The aim was to continue debt restructuring and rebuild the financial sector on a sustainable basis as the aftershocks of the crisis continued to weigh on the economy.

3. Abhisit Vejjajiva government

The Abhisit administration issued one emergency borrowing decree.

• The 2009 decree authorised THB400 billion in borrowing to restore and strengthen economic stability. The funds were used for domestic economic recovery projects under the Thai Khem Khaeng programme after the 2008 global financial crisis, including relief measures such as stimulus cheques for the public.

In addition, Abhisit’s government also proposed a separate THB400 billion borrowing bill, but the Cabinet later withdrew it from Parliament after economic conditions began to improve.

4. Yingluck Shinawatra government

The Yingluck administration issued one emergency borrowing decree.

• The 2012 decree authorised THB350 billion in borrowing to establish a water management system and build the country’s future. It was designed to create a national water management framework, lay the foundations for long-term development and help restore infrastructure damaged by the devastating floods in the Chao Phraya basin in 2011.

Later, in 2013, the government proposed a THB2 trillion borrowing bill to fund nationwide transport infrastructure investment. However, the Constitutional Court ruled it unconstitutional, citing concerns over fiscal discipline and unclear oversight mechanisms.

5. Prayut Chan-o-cha government

The Prayut administration issued two emergency borrowing decrees.

• The first, in 2020, authorised THB1 trillion in borrowing to cushion the economic and social fallout from the Covid-19 pandemic. The money was divided into three main areas: public health, consumption stimulus and support for small-scale investment projects to keep money circulating in the economy during the crisis.
• The second, in 2021, authorised an additional THB500 billion to address a fresh wave of Covid-19 infections and support national economic recovery.

Before the second decree was issued, the State Fiscal and Financial Disciplines Committee, chaired by the prime minister, raised the public debt ceiling from no more than 60% of GDP to 70% to accommodate further borrowing.

6. Anutin Charnvirakul government

The current government is considering issuing one emergency borrowing decree to tackle the energy crisis triggered by the war in the Middle East, which has driven up domestic retail oil prices. Diesel prices in Thailand climbed to THB50.54 per litre on April 5, 2026.

To contain domestic fuel prices, the government has relied on the Oil Fuel Fund mechanism. As of April 20, 2026, the fund was running a deficit of THB62.046 billion, while the Energy Ministry said oil reserves stood at 110 days.

Beyond the energy shock, the government also wants to prepare funding to cope with the threat of super El Niño, which has been described as potentially the worst in 140 years. The Thai Meteorological Department has assessed that Thailand is likely to enter El Niño conditions between June and August 2026, with a 62% probability, and that the pattern could continue through to the end of the year.

Meanwhile, the Hydro-Informatics Institute (Public Organisation) has forecast annual rainfall in 2026 at levels close to those seen in 2012, at 1,479 millimetres, below the 30-year average of 1,500 millimetres.