Earth Pongsakorn, spokesperson for the Democrat Party, is concerned about fiscal stability, fearing that the 400 billion baht loan decree could trigger rising inflation and push up per capita debt. He suggests expanding options to control refinery profits and imposing windfall taxes instead of borrowing money to ease the burden.
17 May 2026 GMT+7 Mr. Pongsakorn Kwanmuang, spokesperson for the Democrat Party, commented on the government's issuance of a Royal Decree authorizing the Ministry of Finance to borrow 400 billion baht, saying that while this borrowing injects funds into the public, it also creates a long-term financial obligation. It is estimated that although citizens may receive some direct cash injection, they will bear an increased public debt burden averaging about 6,000 baht per person. Moreover, issuing the loan decree allows the government to spend funds without parliamentary oversight or checks and balances.
The Democrat Party spokesperson further noted that comparing this to past economic crises where Thailand needed special laws to borrow money reveals clear differences in economic stability. During the 1997 Asian Financial Crisis, GDP contracted sharply for eight consecutive quarters, non-performing loans in financial institutions reached 52%, and foreign reserves hit critical lows due to defending the baht. In the 2008-2009 global financial crisis, GDP shrank by 7.1%, exports and tourism declined severely, unemployment surged, and cash reserves tightened. During the COVID-19 crisis, economic activity halted domestically and internationally. These conditions forced the government to borrow to support businesses and preserve employment.
Currently, although the overall economy faces a slowdown, key economic stability indicators remain strong: first-quarter GDP grew 1.5%, exports rose 19%, tourism expanded 7.2%, and Moody's Investors Service recently affirmed Thailand's economic stability. Therefore, Thailand is not facing a fiscal crisis but rather a cost crisis related to production and living expenses.
“The government's plan to borrow 400 billion baht, splitting the first 200 billion to inject cash into the system, could worsen inflation and raise product costs. The latter 200 billion intended for energy restructuring should instead focus urgently on negotiations with businesses and power plants to reduce standby charges, electricity tariffs, and oil pricing structures, thereby easing public burdens without borrowing up to the ceiling and undermining fiscal security,” he said.
Simultaneously, Mr. Pongsakorn proposed three policy alternatives to avoid increasing public debt and urged the government to use other policy tools to manage energy costs and drive welfare projects such as the 'Khon La Khrueng' co-payment scheme, or the 'Thai Help Thai' program, without relying on off-budget borrowing. These include:
1. Managing excess profits in the energy sector. Past financial reports from oil refineries show they benefit from excessive price spreads due to soaring oil prices. The government should consider imposing a windfall tax alongside excise taxes to immediately bring oil prices down to the low 30 baht range. This would also reduce related costs such as cooking gas, plastic pellets, and transportation.
2. Reallocating unspent budget funds. An assessment over the past 2-3 months estimates that more than 100 billion baht in government budgets remain unspent. These funds could be redirected to efficient economic stimulus projects.
3. Cutting unnecessary expenditures. If the government assesses the economy is truly in crisis, it should reduce or suspend non-urgent development budgets across ministries for this fiscal year and use those funds to directly support the public.