Cabinet approves B400-billion borrowing decree

Funds to be used to alleviate impact of energy crisis, says finance minister

PUBLISHED : 5 May 2026 at 14:49

WRITER: News Agencies

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The ​cabinet on ‌Tuesday approved an emergency decree to borrow 400 billion baht to alleviate cost of living ​pressures ⁠and support measures to reduce energy costs, Prime Minister Anutin Charnvirakul said.

‌The borrowing is necessary because higher energy prices will impact everyone, Finance ⁠Minister Ekniti Nitithanprapas said after a cabinet meeting.

The sum approved is 100 billion baht less than the figure officials had been discussing earlier.

Half of the borrowing will be targeted towards vulnerable groups and the other half ​will be used to help fund the transition away from fossil fuels and towards renewable energy.

“We have ​to ‌help vulnerable groups,” Mr Ekniti said, adding that the government would ​try ⁠to reduce living costs and push for ⁠clean energy use.

All of the borrowing will be sourced from within Thailand, he ⁠said, adding that the ​decree would be put to parliament next week.

The funds would be used from June to September, and would include aid for more than 20 million low-income people under the “Thais Helps Thais” scheme to ease living costs.

The US-Israel war against Iran that began in late February has sent global energy prices soaring, resulting in rising prices for oil and gas, shipping and consumer goods.

Mr Anutin called the borrowing “a tool to move the country forward and prevent economic weakening”.

“We will get through this crisis together,” he told reporters.

The borrowed sum is among the highest in recent history, but below levels seen during the 1997 Asian financial crisis and the Covid-19 pandemic years.

Public debt stood at 66.4% of the country’s GDP in March, below the 70% ceiling, and the new loans will not breach the limit, Mr Ekniti said.

Thailand’s core inflation rate is forecast to reach 3% this year because of energy cost impacts, up from an earlier estimate of 0.3%.

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- KEYWORDS

- Thailand economy

- Thai cabinet

- Government borrowing

- Energy prices

- Ekniti nitithanprapas

- Public debt

- Renewable energy transition