Court to rule on July 9 on B400bn borrowing decree

Opposition says conditions do not constitute an ‘emergency’ as government contends

PUBLISHED : 24 Jun 2026 at 15:23

The ​Constitutional ​Court said ‌on Wednesday that it ​will ⁠issue its ‌ruling on the ⁠legality of the government’s 400-billion-baht emergency borrowing ‌decree on July ​9.

The ​cabinet on May 5 approved the emergency decree to borrow 400 billion baht, with 200 billion going to alleviate cost of living ​pressures arising from the Middle East war, and another 200 billion to be used to support the transition to renewable energy.

The opposition People’s Party had sought a court ruling on the decree under Section 172 of the Constitution. It argued that the prevailing situation did not meet the strict test of an “urgent and unavoidable necessity” required to justify using an emergency decree instead of a standard parliamentary bill.

The party also said details about the energy transition spending were vague, and merited proper scrutiny by lawmakers.

Finance ⁠Minister Ekniti Nitithanprapas has maintained that the borrowing is necessary because higher energy prices impact everyone.

Public debt is currently around 66.4% of Thailand’s gross domestic product (GDP), below the 70% statutory ceiling, and the new borrowing would not breach the limit, Mr Ekniti added.

Bank of Thailand officials and independent economists have cautioned that the borrowing would significantly reduces the government’s capability to handle unexpected future economic shocks.

There is also scepticism over whether direct, short-term cash subsidies for low-income people and welfare recipients will adequately address deep-seated structural flaws in the economy.

Prime Minister Anutin Charnvirakul has called the borrowing “a tool to move the country forward and prevent economic weakening”.