Government readies 500bn baht for Thai Help Thai Plus

Thailand is preparing around 500 billion baht in funding to support the Thai Help Thai Plus relief scheme, which is expected to begin on June 1, as surging energy prices from the conflict in the Middle East place growing pressure on the economy and household living costs.

The sharp rise in oil prices is already feeding through to the wider Thai economy, while living costs continue to climb. Officials and analysts have assessed that the energy crisis could persist for an extended period.

The government plans to roll out a package of relief measures under the Thai Help Thai Plus scheme to ease the burden on the public and cushion the impact of the crisis.

To prepare funding for the programme and wider crisis response, the government has been managing budget resources for some time. Prime Minister and Interior Minister Anutin Charnvirakul has instructed agencies preparing the 2027 fiscal budget to cut spending that is not urgent or necessary.

The government is also preparing a budget transfer bill to pool unspent funds that cannot be disbursed in time into the 2026 central budget. Most recently, the Finance Ministry is preparing to propose an emergency decree authorising it to borrow up to 400 billion baht, which is expected to be submitted to the Cabinet next week.

Krungthep Turakij has compiled the possible funding sources for the Thai Help Thai Plus scheme, with total available funds estimated at around 500 billion baht. The government could spend the money by September 30, 2026, before the end of the fiscal year and the start of the new budget cycle.

1. Central budget reserve for emergencies and urgent necessity in 2026: around 20 billion baht remaining

Paradorn Prissananantakul, Minister attached to the Prime Minister’s Office, who oversees the Budget Bureau, said in mid-April that around 20 billion baht remains in this year’s central budget reserve for emergencies and urgent necessity.

He said part of this could be used first for the Thai Help Thai Plus scheme, while the government awaits the Finance Ministry’s conclusion on target groups and project details. He expressed confidence that the budget could be managed.

However, the size of the target groups and the expected spending under Thai Help Thai Plus suggest that the scheme will require more than 120 billion baht.

The package includes a co-payment element, under which the government pays 60% and the public pays 40%.

There is also planned additional funding for state welfare cardholders, with 1,000 baht to be topped up per person. Based on the existing 13.4 million welfare cardholders, this would require another 13.4 billion baht, unless a new registration round reduces the number of eligible recipients.

At the same time, many agencies continue to seek allocations from the central budget, with requests submitted to the prime minister and considered by the Cabinet each week. As a result, this portion of the central budget is unlikely to cover much of the Thai Help Thai Plus scheme.

2. Budget transfer bill for 2026

Under the proposed 2026 budget transfer bill, the Comptroller General’s Department under the Finance Ministry estimates that up to 100 billion baht in budget funds could be transferred back into the central budget.

The deadline for budget commitments and disbursement was set at April 30.

However, estimates from the Comptroller General’s Department and the Budget Bureau still differ significantly.

The Budget Bureau expects the transfer bill to recover about 50-70 billion baht. It argues that the current crisis differs from the Covid-19 period, when economic activity came to a near standstill and more than 84 billion baht could be transferred.

This time, economic activity is still continuing, and cutting budgets too deeply could further disrupt the economy. Therefore, the Budget Bureau’s estimate of 50-70 billion baht is seen as more likely.

3. Emergency decree authorising Finance Ministry borrowing in 2026: 400 billion baht

On April 30, the prime minister called a meeting of economic agencies, including the Finance Ministry, the National Economic and Social Development Council, the Bank of Thailand and the Council of State, to discuss an emergency decree authorising the Finance Ministry to borrow up to 400 billion baht.

The matter is expected to be submitted to the Cabinet on May 5 before being reported to Parliament under the required procedure.

The 400-billion-baht borrowing plan would not require an increase in the public debt ceiling. It would set a borrowing framework under which the government could borrow up to that amount, while actual spending would depend on projects proposed and screened by a committee to be established.

The 400-billion-baht borrowing framework would give the government a large funding pool to manage Thai Help Thai Plus, which is expected to include several sub-projects.

Some of these projects are likely to require continuing spending to support the economy and help the public, especially vulnerable groups, get through the crisis.