Constitutional Court Set to Decide on 400 Billion Baht Loan Draft on 9 July

Tensions rise as Anutin’s government drafts a 400 billion baht loan. The Constitutional Court is set to rule on 9 July whether it violates Section 172 of the Constitution after the opposition requested constitutional interpretation.

On 6 July 2026, the Constitutional Court scheduled a vote for Thursday, 9 July 2026, to decide if the 400 billion baht loan draft bypasses the regular budget process and thus violates Section 172 of the Constitution. The opposition MPs, led by Nattapong Ruangpanyawut, list MP and leader of the People’s Party, and Korn Chatikavanij, list MP and deputy leader of the Democrat Party, along with the Seri Ruam Thai Party, submitted the petition through Sopon Sarum, Speaker of the House of Representatives, prompting the Court to schedule this ruling.

The main reason for the 400 billion baht loan draft stems from the government’s view that conflicts in the Middle East severely affect global energy security and stability. Thailand, heavily reliant on imported energy, faces rising energy and production costs, forcing businesses to pass expenses onto consumers, impacting household consumption.

The government sees an urgent need for continuous measures to assist citizens, farmers, and businesses affected by the energy crisis.

The loan strategy divides the 400 billion baht budget equally into two parts: addressing immediate energy crisis hardships and investing in energy structure transformation.

Part 1, immediate relief of 200 billion baht, will fund projects including:

• The Thai Help Thai Plus program, where the government covers 60% and citizens pay 40%, granting each person 4,000 baht.
• Increasing welfare card top-ups from 300 baht to 1,000 baht per person per month.
• Supporting farmers and SMEs to reduce production costs and maintain stability for small businesses.

Part 2, energy restructuring for the future, with 200 billion baht allocated to projects such as:

• Clean energy initiatives promoting the installation of renewable power systems to reduce fossil fuel dependence.
• Electric vehicle ecosystem development, supporting EV usage and expanding charging stations nationwide.
• New economy initiatives to generate income from carbon credits and develop green labor skills.

If the ruling is favorable, the Ministry of Finance, with Cabinet approval, will be authorized to borrow in baht or foreign currency or issue government bonds up to 400 billion baht total. Borrowing agreements or bond issuances must be signed by 30 September 2027. This borrowing will comply with Section 53 of the State Fiscal and Financial Discipline Act of 2018. The public debt-to-GDP ratio is projected to reach about 69.88% by the end of the 2027 fiscal year, remaining within the debt management framework capped at 70%.