"Ekniti" unveils emergency decree for 400 Billion Baht loan to cope with global crisis

Today (5 May 2026), 12:30 PM at Government House, Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas announced after the Cabinet meeting that the meeting approved an emergency decree authorizing the Ministry of Finance to borrow 400 billion baht to address the economic crisis affecting the public due to the global situation. This crisis is severe, rapid, and has occurred in five consecutive waves: the war crisis, the energy price crisis, the production cost crisis, the cost of living crisis, and the crisis of declining purchasing power.

“The government has reduced the borrowing limit from the previously reported 500 billion baht to only 400 billion baht to maintain fiscal discipline and consider the concerns of all sectors. It is emphasized that this borrowing is not solely for relief efforts but also to create opportunities for the country to adapt and achieve future sustainability,” Mr. Ekniti said.

Mr. Ekniti further explained that the borrowed amount will be divided into two main parts, each totaling 200 billion baht. The first part will be used for relief and mitigation of the direct impact on vulnerable groups of citizens and businesses. The second part will be used for the transition to renewable and clean energy to reduce vulnerability from dependence on imported oil and natural gas. This will help lower long-term costs for citizens and prevent a recurrence of the same crisis.

Mr. Ekniti also clarified the urgent need to issue an emergency decree instead of using the regular budget, explaining that the 2026 budget had insufficient funds, with only about 50 billion baht actually available. Meanwhile, the central budget only had slightly over 20 billion baht remaining, which needed to be reserved for other emergencies. Regarding the 2027 budget, it will take more than five months, which is insufficient to address the crisis that could escalate into stagflation—a crisis of inflation compounded by a crisis of purchasing power. Therefore, this is a decision the government must make.

Mr. Ekniti further stated that this borrowing will be entirely domestic to demonstrate fiscal discipline. This amount is available given the high liquidity in the banking system (over 1 trillion baht) and low interest rates, minimizing exchange rate risk and keeping borrowing costs low. The Ministry of Finance estimates that the public debt ratio will remain below 70% of GDP, within the established debt ceiling. Regarding the process, the emergency decree will be submitted to parliament on May 14, 2026, followed by the appointment of a committee to screen the use of the borrowed funds, chaired by the Permanent Secretary of the Ministry of Finance. Projects such as the "Half-Price" scheme or various welfare cards can also request funding from this budget, but the government will consider other funding sources as well. The government aims to begin implementing these projects to assist the public on June 1, 2026.