Anutin defends 400bn-baht borrowing decree as necessary and lawful

Prime Minister and Interior Minister Anutin Charnvirakul said he was confident the government’s 400-billion-baht borrowing decree does not breach the law, insisting it was not designed to boost the government’s popularity but was a necessary measure.

Anutin said he had already seen the documents prepared for submission to the Constitutional Court regarding the decree. The clarification was submitted by Pakorn Nilprapunt, Deputy Prime Minister for Legal Affairs.

He said he had reviewed the draft clarification two or three times to ensure the documents submitted to the court were complete. All relevant parties had worked to provide the best possible explanation, he added.

“What we are most confident about is that we did not create this project as some have alleged — that we did it to campaign or to increase popularity. This government’s popularity has existed since February 8. The people have already decided to allow this government to administer the country,” Anutin said.

He said that once the government took office, it had to work, and the borrowing policy should be viewed in context. The borrowing does not create other risks, he said, because it is denominated in baht and raised domestically, with the aim of increasing liquidity in the system for the public.

Anutin said every baht and satang under the borrowing decree would be sent directly to the people, not to any agency or ministry to build or invest in projects that would take eight, five or three years before results could be seen.

“There is none of that. The money goes down to stimulate the economy and strengthen economic security for the people and the country,” he said.

Anutin reaffirmed that the government’s decision to borrow would help all sides of Thailand’s financial system by allowing funds held in the deposit system to be lent to the government.

“If lenders had no confidence, who would lend? The fact that they lend to the government means they are confident that this loan will definitely not become an NPL,” he said.

He said the loan terms were long-term, at around nine to 10 years, with very low interest rates. The interest was also at a level that encouraged those responsible in government to consider that if funds were borrowed and injected into the system, returns would come back in the form of taxes, economic circulation and improved spending liquidity for the public.

“We must put the benefits of the people and the country first. If the interest paid comes back in the form of taxes, we can pay it comfortably. We do not have to worry about foreign exchange rates,” Anutin said.

He urged the public to trust that the government would closely monitor the process, adding that every baht and satang must reach the people directly, with nothing lost along the way.

“It is a direct transfer between the government and the people, who are the owners of the government,” he said.

Asked whether the government was confident there would be no legal problem after reviewing the matter, Anutin said the government would not interfere with the Constitutional Court’s intention or how it considers the case.

However, he said the government was confident that before the measure was issued as an emergency decree, it had passed legal screening and had to meet a very high level of legal confidence.

“If you ask the government, the government has no concern that this action violates the law or the Constitution. If it violated the law, it could not be done. If it could not be done, we would not do it. But this does not violate the law. It is something that should be done,” he said.

Anutin said all the conditions were positive factors, and the government had to act because the people would receive the greatest benefit from the measure.

The 400-billion-baht decree was approved by Cabinet on May 5 and published in the Royal Gazette on May 9, authorising the Finance Ministry to borrow funds to ease the impact of the energy crisis and support Thailand’s energy transition. Government descriptions of the plan say the money is intended to help people, farmers and businesses affected by energy-cost pressures, while also supporting measures such as cleaner vehicles, electric charging infrastructure and skills development for a new energy economy.

However, the decree is now before the Constitutional Court after opposition MPs challenged whether it meets the constitutional conditions for an emergency decree, with the court accepting the petition on May 18 and ordering the Cabinet to submit explanations and evidence within seven days.