Prime Minister Anutin Charnvirakul has instructed his deputy Ekniti Nitithanprapas and the Council of State to examine the legal implications of issuing an emergency loan decree and expanding the national public debt ceiling.
Anutin emphasised that any decision to borrow or adjust debt limits must undergo rigorous scrutiny. This measure is intended to ensure strict fiscal discipline and full adherence to existing legal frameworks.
The directive was issued following a cabinet meeting on Tuesday.
While media reports suggest there was no formal discussion regarding a proposed 500 billion baht borrowing decree during the session, the prime minister ordered the study as a contingency plan in case economic conditions worsen due to escalating global and energy crises.
Feasibility and debt management
Ekniti, who also serves as the finance minister, informed the cabinet that issuing a loan decree remains legally feasible under current conditions.
He cited the significant impact of worldwide economic and energy shocks as justification for such measures.
The finance minister noted that credit rating agencies focus more on the effectiveness of fund deployment rather than the act of borrowing itself.
He outlined a framework that prioritises targeted support for vulnerable groups, structural transformations, and coordinated recovery efforts across various sectors.
Thailand’s public debt is currently approximately 66 percent of the gross domestic product (GDP). This remains below the statutory ceiling of 70 percent, providing a fiscal headroom of roughly 800 billion baht.
Ekniti argued that there is no immediate need to raise the ceiling unless borrowing exceeds this threshold, adding that Thailand’s debt levels are moderate compared to European economies.
Economic cabinet and diplomatic talks
The prime minister announced that the newly established economic cabinet will hold its first meeting next Monday.
This gathering will include key private sector bodies, such as the Thai Chamber of Commerce, the Federation of Thai Industries, and the Thai Bankers Association, to discuss stimulus measures and broader economic policies.
In a separate development, Anutin revealed he held informal talks with China’s Foreign Minister Wang Yi during the latter’s private visit to Thailand.
The discussions focused on enhancing bilateral cooperation, specifically increasing Chinese imports of Thai agricultural products and expanding investment and technology transfer.
However, the proposed borrowing has faced criticism from the opposition.
People’s Party deputy leader Sirikanya Tansakun argued that a 500 billion baht package might be unnecessary without a well defined spending and repayment plan.
She called for greater clarity regarding fiscal sustainability and the overall economic outlook.
