The Democrat Party has resolved to petition the Constitutional Court to review the 400 billion baht loan decree, citing legal violations and damage to fiscal discipline. They suggest reducing oil tax by 7 baht per liter and reallocating budget funds stuck in pipeline projects instead of creating debt burdens for future generations.
On 5 May 2026, Korn Chatikavanij, Deputy Leader of the Democrat Party, stated after a party MP meeting that following the Cabinet's decision today to borrow an additional 400 billion baht through a loan decree, the government claims the authority under Section 172 of the Constitution to do so. This allows borrowing beyond the budget deficit. However, the Democrat Party has discussed this internally and agreed that this decree likely does not comply with constitutional conditions. The party has resolved to petition the Constitutional Court to assess the appropriateness, legality, and government authority in issuing this loan decree.
"To give some background, the government can spend more than its income under the Public Debt Act, meaning it can borrow each year to cover budget deficits, often substantial amounts. The reason Thailand's fiscal status remains relatively stable compared to many countries is because past governments have been bound by fiscal discipline as defined by the Public Debt Act."
"For example, in fiscal year 2027, the government plans to spend nearly 800 billion baht more than its income. The borrowing ceiling to cover the deficit under the Public Debt Act is set at about 800 billion baht. Every government has faced this limit, which prevents excessive borrowing and using future public funds irresponsibly. This is why Thailand's fiscal status remains relatively stable to this day." The Deputy Leader of the Democrat Party said,
No crisis warrants additional borrowing yet.
Korn added that the law provides flexibility for the administration to borrow more only in genuine urgent emergencies, as referenced in Section 172 of the Constitution. Past loan decrees issued under this section have always responded to crises affecting economic and national security, such as the 1998 financial crisis, the 2009 global financial crisis, and the 2022 COVID-19 pandemic. Each time, economic growth contracted, necessitating urgent borrowing due to lack of alternative funds. This current situation does not meet such criteria.
Proposes urgent budget reallocation.
Korn continued that currently, citizens suffer from high oil prices impacting living costs, which is undeniable. However, the government has other options. The macroeconomic impact on national economic security from the living cost issue is not yet clear. Last year's economy grew 2.6%, and despite the Middle East conflict, this year's growth is forecast at about 1.5%, still positive. The Democrat Party suggests the government avoid issuing an unconstitutional loan decree and instead urgently enact a budget reallocation bill, which has been discussed for months but not implemented.
Questions whereabouts of 50 billion baht.
Korn also noted that originally, the Finance Minister indicated that at least 100 billion baht of unused, nonurgent budget funds could be reallocated for emergency spending. However, recent reports suggest only 50 billion baht can be reallocated. The Democrat Party questions why this is limited to 50 billion baht. Regardless, this 50 billion baht is available to fund projects the government deems more urgent than current budget items.
Calls for mid-year budget law enactment.
Moreover, for fiscal year 2026, there remains some borrowing room available through a mid-year budget act, amounting to more than 10 billion baht. This can be combined with the 50 billion baht reallocated funds to provide the government with financial resources to use until the new fiscal year 2027 budget takes effect on 1 October.
Korn explained simply that the government does have alternatives and other sources of funds to help citizens until the larger 2027 budget, worth over 3 trillion baht, becomes effective on 1 October.
Proposes excise tax reduction.
The Democrat Party has proposed a comprehensive approach to aid citizens by urging the Ministry of Finance to reduce the excise tax on oil by 7 baht per liter. If the government implements this, all citizens would benefit, whether direct oil users or those affected by rising prices caused by increased production and transportation costs from high oil prices. This measure would cost less than issuing the loan decree and would alleviate citizens' hardships to the same extent as currently experienced.
Firmly opposes loan borrowing.
For all these reasons—fiscal discipline, available alternative funding sources, and other measures that could better reduce citizens' living costs compared to the government's proposed loan decree—the Democrat Party unanimously agrees that they cannot accept this. They will proceed to petition the Constitutional Court to review whether the government's Cabinet resolution today is lawful and whether it benefits or harms the country's economic stability and the wellbeing of citizens now and in the future.
Not an urgent emergency.
Satit Wongnongtoey, Deputy Leader of the Democrat Party and Chairman of the MPs, added that the party does not intend to obstruct government efforts to help citizens. While the loan decree for 400 billion baht includes measures to stabilize the economy and aid people—for example, purchasing production inputs like fertilizer or other projects—these could be funded from other sources, as Korn noted.
However, part of the decree clearly lacks urgent emergency justification, specifically the energy sector restructuring, which is not an immediate emergency but involves hundreds of billions baht funded via a loan decree. Thus, the Democrat Party must clarify that the government's issuance of this decree violates legal conditions.
Seeks opposition support for court petition.
Satit said the draft petition to the Constitutional Court is underway. Since the constitution requires signatures from one-fifth of MPs (100 people) to submit, and the Democrat Party holds 21 seats, they are seeking additional support from opposition parties such as the Prachachon Party and Kla Party and will coordinate further.
"We want the public to understand that the 400 billion baht loan decree will burden our future generations. The government must act responsibly and only in unavoidable urgent emergencies. Since alternative solutions exist but were not chosen, it is our duty to clarify this." . Satit concluded.