Loan decree faces pushback

Lawmakers question govt urgency claim

PUBLISHED : 12 May 2026 at 05:40

NEWSPAPER SECTION: News

WRITER: Chairith Yonpiam and Mongkol Bangprapa

The future of the government's 400-billion-baht emergency loan decree remains uncertain after opposition parties on Monday submitted a petition asking the House Speaker to forward the matter to the Constitutional Court for a ruling.

Despite the legal challenge, the government maintains that the decree is already in force following its publication in the Royal Gazette and will continue implementation.

The plan, designed to address economic pressures and support energy transition measures, has triggered a wider political dispute over legality, necessity, and fiscal risk.

Opposition parties led by the People's Party (PP) have argued that the decree violates constitutional provisions, particularly Section 172, which allows emergency executive action only in cases of unavoidable urgency.

PP leader Natthaphong Ruengpanyawut raised concerns about a 200-billion-baht allocation earmarked for energy restructuring. He said this portion is not related to economic security and does not constitute an urgent necessity, yet has been incorporated into the emergency loan decree.

Deputy Democrat Party leader Korn Chatikavanij said the constitution provides flexibility for the government to borrow in the event of an unavoidable economic crisis. Therefore, the opposition must scrutinise whether, beyond this year's 800-billion-baht budget deficit, the government also intends to issue additional emergency borrowing decrees that genuinely meet legal requirements.

He argued that, when compared with past emergency borrowing measures, the current 400-billion-baht decree does not appear to be consistent with Section 172 of the constitution. "Whether today's conditions meet the same threshold is ultimately a matter for the Constitutional Court to decide," Mr Korn said.

Democrat Party leader Abhisit Vejjajiva pointed to past crises such as the 1997 financial collapse and the Covid-19 pandemic, arguing that those cases involved clear systemic emergencies, unlike current conditions where key economic indicators remain relatively stable.

House Speaker Sophon Zarum confirmed the petition will be reviewed and forwarded to the Constitutional Court within the required timeframe.

However, PM's Office Minister Paradorn Prissananantakul said the government will proceed with implementation of the 400-billion-baht loan decree regardless of ongoing scrutiny, adding that government agencies will continue preparatory work while awaiting any Constitutional Court consideration.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said Thailand's economy is currently facing a complex and unpredictable crisis. He identified rising energy costs as a key driver, noting the country's heavy reliance on imported oil and natural gas, which has contributed to sharply higher inflationary pressures.

He said headline inflation in the latest month stood at 2.9% and is expected to rise further, potentially peaking at 4–5%. He warned that this would significantly affect the cost of living and consumer goods prices. He added that the government must prepare for successive waves of economic pressure as global energy volatility continues.

"Issuing the emergency decree authorising the Finance Ministry to borrow funds is urgently necessary to prepare for a potential escalation of the crisis," he said.

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