Loan decree ‘must pass’

Urgent intervention needed, Ekniti says

Finance Minister Ekniti Nitithanprapas insisted the 400-billion-baht emergency borrowing decree must go ahead, saying the government must act swiftly to address a deepening cost-of-living crisis despite parliamentary delays caused by legal challenges.

Mr Ekniti, also a deputy prime minister, said the loan package was essential to shield households and small businesses from mounting economic pressures driven by soaring energy prices and inflation.

Although the decree was due to be debated in parliament on Thursday, consideration has been suspended after opposition lawmakers petitioned the Constitutional Court to review its legality.

Speaking after the postponement on Thursday, Mr Ekniti argued that Thailand is facing a different kind of economic emergency from the 1997 Asian financial crisis or the 2008 subprime mortgage crisis.

“This is a livelihoods and cost-of-living crisis that has come in waves,” he said.

He warned that rising energy prices caused by global conflicts have pushed up production costs and inflation, which recently reached 2.9% and could rise further next month.

Without urgent intervention, small businesses would struggle to survive, leading to job losses and a broader economic slowdown. The government intends to use the funds for two main purposes: immediate relief measures and long-term energy transition projects, Mr Ekniti said.

The minister believes Thailand’s heavy reliance on imported energy lies at the heart of the current crisis and argues that investment in cleaner energy will help reduce household and transport costs over time.

Proposed measures include support for rooftop solar panel installation and incentives for transport operators to switch to alternative fuels such as B20 biodiesel.

“People say the energy transition is not urgent, but long-acting medicine must be taken early,” he said. “We cannot wait for the 2027 budget because people may not survive the pressure before then.”

He also rejected calls to ease the burden through fuel excise tax cuts, saying previous reductions during the Russia-Ukraine crisis cost the state 180 billion baht while disproportionately benefiting wealthier motorists. Instead, the government plans to target assistance towards vulnerable groups and small enterprises.

One of the first measures under the programme, branded “Thais Help Thais Plus”, is expected to be submitted to the cabinet on May 19.

Despite parliamentary delays, independent constitutional scholar Komsarn Pokong said the government could technically continue borrowing while the Constitutional Court reviews the decree, adding that the constitution only requires parliament to suspend deliberation until the court issues a ruling, expected within 60 days.

However, opposition parties are demanding tighter scrutiny. People’s Party leader and opposition leader Natthaphong Ruengpanyawut called for the establishment of a special parliamentary committee to oversee spending and ensure transparency, saying all borrowing should be subject to public accountability.

Thai Pakdee Party leader Warong Dechgitvigrom questioned whether half of the loan package earmarked for energy transition projects would genuinely benefit the public, warning that the scheme risked favouring corporate interests under the guise of clean-energy reform.