Finance Ministry to seek 400bn-baht loan decree as Middle East risks mount

Thailand is moving to build a new fiscal buffer against rising global risks, with the Finance Ministry preparing to submit a draft emergency borrowing decree worth up to 400 billion baht to Cabinet on May 5.

The proposed decree is intended to give the government additional funding capacity to cushion the economy from the impact of fighting in the Middle East, while also supporting the Thai Helps Thai Plus programme, a major cost-of-living and purchasing-power stimulus package expected to begin in June.

A Finance Ministry source said the draft decree authorising the ministry to borrow up to 400 billion baht would be tabled at next Tuesday’s Cabinet meeting. The move follows a high-level economic meeting at Government House on April 30, chaired by Prime Minister and Interior Minister Anutin Charnvirakul.

Anutin called the government’s economic team to the Thai Khu Fah Building at around 10.30am for talks that lasted more than three hours. Those attending included Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas; Minister attached to the Prime Minister’s Office Paradorn Prissananantakul; Bank of Thailand Governor Vitai Ratanakorn; National Economic and Social Development Council secretary-general Danucha Pichayanan; Finance permanent secretary Lavaron Sangsnit; Fiscal Policy Office director-general Vinit Visessuvanapoom; and Budget Bureau director Anan Kaewkumnoed.

After the meeting, senior economic officials declined to disclose details of the discussions. Danucha, Lavaron and Vinit all refused to comment on the outcome, while Lavaron and Danucha said questions should instead be directed to Ekniti as finance minister.

The proposed 400-billion-baht ceiling has been calculated from the government’s expected need for additional budget resources. Officials said only about 20 billion baht remains in the central contingency budget for emergency and urgent spending, while the Thai Helps Thai Plus programme will also require sufficient funding sources.

However, the government has stressed that the borrowing authority would be used only as necessary and in line with projects already assessed as worthwhile. The 400-billion-baht ceiling does not mean the full amount will automatically be borrowed or spent.

The Finance Ministry has already discussed the decree with Anutin and key economic agencies, including the Bank of Thailand, the NESDC and the Budget Bureau. The ministry is now ready to submit the proposal to Cabinet next week under the required process.

Paradorn said the prime minister had called the meeting to discuss the Thai Helps Thai scheme, which the government wants to bring before Cabinet as quickly as possible. He said the Finance Ministry would take the lead on policy design and implementation guidelines, but other ministries would also need to consider additional relief measures in their own areas.

These could include measures from the Labour Ministry, the Education Ministry, and the Agriculture and Cooperatives Ministry, depending on how the government decides to structure assistance for affected groups.

Ekniti earlier said the Thai Helps Thai scheme, also referred to as Khon La Khrueng Plus, is expected to begin on June 1. The broader programme will cover several measures and is expected to benefit more than 30 million people.

The target groups are divided into two main categories. The first is the 13.4 million state welfare cardholders. The second is the general public, with officials still reviewing the exact number of eligible participants. Together, the two groups are expected to exceed 30 million beneficiaries.

The plan to issue the borrowing decree follows an instruction given by Anutin at the Cabinet meeting on April 21. At that meeting, the prime minister said the global situation remained highly uncertain, while Thailand was facing multiple challenges linked to energy, the economy, society, the environment and natural disasters.

He also noted that the preparation of the fiscal 2027 expenditure budget faced several constraints. The government therefore needed to ensure it had sufficient budget readiness to address problems and future impacts, support the public, and invest in key areas when necessary.

An emergency borrowing decree is one tool available to the government for that purpose. Anutin assigned Ekniti, as finance minister, to study the relevant legal issues, the appropriate borrowing amount, the timeframe and the procedural steps required for issuing such a decree. The aim is to ensure the government is prepared in advance and can act quickly if circumstances require.

Separately, officials expect the new phase of Thai Helps Thai Plus to require about 120 billion baht. The measure is designed to ease living costs during the energy crisis and follows the structure of the previous co-payment scheme. Around 30 million people are expected to receive support.

That estimated 120-billion-baht budget does not include the state welfare card component. Ekniti previously said welfare cardholders would receive 1,000 baht per month for four months, or 4,000 baht in total. With around 13 million cardholders, that part of the programme would require about 52 billion baht.

The Bhumjaithai Party’s Facebook page has also published details of the measure under the name “Thai Helps Thai: reducing expenses, increasing purchasing power”. According to the information posted, each eligible person would receive 4,000 baht over four months, from June to September 2026, at 1,000 baht per month.

The scheme would operate on a 60:40 co-payment basis, with the government covering 60% of spending and the public paying 40%. For example, on a 100-baht purchase, the state would contribute 60 baht while the participant would pay 40 baht.

Registration is expected to open in May 2026, with spending to begin from June. Participants would use the benefit through the Pao Tang application at shops taking part in the programme. The entitlement cannot be transferred to another person, cannot be withdrawn as cash, and must be used within the month in which it is received.