Finance Ministry says loan decree in force, Thai Helps Thai Plus goes on

Finance Minister Ekniti Nitithanprapas spoke about the opposition’s petition to the Constitutional Court seeking a ruling on the legality of issuing an emergency decree to borrow THB400 billion, stressing that the decree had already taken effect one day after its publication in the Royal Gazette.

The executive branch can therefore continue its normal work immediately to address problems for the public, while judicial and legislative processes can proceed in parallel.

The issuance of the emergency loan decree was urgently necessary to preserve the country’s economic security.

The situation was entirely different from the 1997 Tom Yum Kung crisis (The Asian financial crisis that began in Thailand) and the 2009 Hamburger crisis (Thailand’s term for the global financial crisis linked to the US subprime mortgage collapse), as the current crisis is being driven by energy costs and the cost of living, which are affecting countries worldwide.

The government must step in to prevent the crisis from escalating into both recession and high inflation, or “stagflation”.

Ekniti said that, in the morning, Pakorn Nilprapunt, deputy prime minister for legal affairs, had clearly explained the legal issues to the Cabinet, saying the emergency loan decree took effect one day after publication in the Royal Gazette.

On the issue of filing a petition with the Constitutional Court, under the Constitution, a petition can be made only on matters related to economic security, which corresponds to Section 172, while the issue of urgent necessity falls within the authority of the executive branch.

The Cabinet meeting had discussed the issue clearly, saying that if a petition were filed, it could be filed only under Section 172 on economic security.

The government insists that the cost-of-living crisis and people’s livelihood problems, which are being faced around the world, genuinely affect the country’s economic security.

However, the government continues to give the highest priority to maintaining fiscal discipline, insisting that it will not raise the public debt ceiling, which is set at 70%.

The proposed borrowing amount had initially been as high as THB500 billion, but was reduced to THB400 billion to keep it below the debt ceiling and maintain fiscal stability, reflecting that commitment.

“If state-enterprise debt and the Financial Institutions Development Fund are excluded, the government’s public debt is about 60% of GDP. When included, it is now 66% of GDP, still under the debt ceiling the government has set at 70% of GDP.”

International confidence in Thailand also remains intact, as reflected in the latest report by R&I (Rating and Investment Information, Inc.), a Japanese credit rating agency, which affirmed Thailand’s rating at A- with a stable outlook.

“For the revision of the debt management plan, the first round of borrowing of more than THB200 billion will begin. The government will borrow gradually according to the needs of projects, to avoid borrowing money and leaving it idle, which would cause the state to pay interest unnecessarily.”

The Ministry of Finance is preparing to propose the second revision of the public debt management plan for fiscal 2026 for Cabinet consideration next week.

It will be considered alongside the “Thai Helps Thai Plus” scheme, which merges the previous “Let's Go Halves Plus” scheme with state welfare in order to integrate assistance for the public.

Ekniti confirmed that the scheme’s timeline remained on the original schedule, with first-phase registration to open on May 25 and use of the benefit to begin on June 1, for two months, followed by a second phase lasting another two months.

The number of eligible recipients is still under consideration.