Pakorn revealed that the government is preparing to issue a 500 billion baht emergency loan decree, citing the urgent necessity to manage overlapping crises, including high energy prices and the super El Niño that Thailand will face.
At 09:30 on 20 Apr 2026 GMT+7, Deputy Prime Minister Pakorn Nilprapunt revealed at Muang Thong Thani that the government is considering issuing a royal decree to borrow 500 billion baht to prepare for potential crises. Issuing such a royal decree is a constitutional government power, applicable for urgent emergency cases to ensure security or economic stability under Article 172. Legally, once the decree is issued, it must be submitted to the House of Representatives for consideration at the earliest opportunity.
When asked about the legal reasons for choosing to issue a royal decree, Pakorn explained that the current situation is urgent and emergency due to limited treasury funds and tight liquidity, while the country faces unpredictable external risks. These include war situations and environmental crises such as the super El Niño phenomenon, which will impact agricultural output and the broader economy. Therefore, the government must have reserve funds to handle these emergencies.
“In practice, although the full 500 billion baht loan may not be drawn, debt management principles require the government to first expand the debt ceiling to the full loan amount stated in the law.”
Pakorn further stated that issuing a budget transfer act can proceed concurrently to provide the government with funds to cope with upcoming crises. The loan decree must be issued after expanding the public debt ceiling from the current 70%, as current debt stands around 66% of GDP. The Ministry of Finance will finalize the ceiling to accommodate the new loan amount since fiscal space is increasingly limited.
The Deputy Prime Minister also addressed the legal status of the Oil Fund, noting ongoing consideration of issuing a government guarantee decree for a 150 billion baht loan to the Oil Fund. Originally, the fund was established as a stabilization tool to temporarily manage energy price volatility, with an appropriate revolving fund of 20-40 billion baht.
However, prolonged subsidy use has deviated from the fund’s original purpose, creating accumulated debts exceeding 100 billion baht. Should additional liquidity be needed in the future, the government will reassess legal provisions and the Oil Fund's situation to align with economic conditions and potential rising energy costs.