Prime Minister Anutin Charnvirakul has tasked his deputy, Ekniti Nitithanprapas, along with the Council of State, to examine the legal framework surrounding a potential emergency loan decree and a possible increase to the national public debt ceiling.
He stressed that any decision to borrow or adjust debt limits must be approached with caution, ensuring strict fiscal discipline and full compliance with legal requirements.
The move follows Tuesday’s cabinet meeting, where no formal discussion took place regarding the proposed 500-billion-baht borrowing plan. However, toward the end of the session, the prime minister instructed officials to study the option as a contingency measure should global economic and energy conditions worsen.
Mr Ekniti told the cabinet that issuing such a loan decree would be legally viable under current circumstances, particularly given ongoing global economic pressures. He noted that credit rating agencies would focus less on the act of borrowing itself and more on how effectively the funds are used.
“Whether we borrow is less important than what we borrow for,” he said, outlining priorities including support for vulnerable groups, economic restructuring, and coordinated recovery efforts.
Thailand’s public debt currently stands at around 66% of GDP, below the statutory ceiling of 70%, leaving roughly 800 billion baht in fiscal headroom. Mr Ekniti added that unless borrowing exceeds this threshold, raising the ceiling may not be necessary. He also pointed out that Thailand’s debt level remains moderate compared to many European countries and aligns with regional peers.
The prime minister also confirmed that the first meeting of the newly formed economic cabinet will be held next Monday, bringing together key private-sector organisations such as the Thai Chamber of Commerce, the Federation of Thai Industries, and the Thai Bankers’ Association to discuss stimulus measures and broader economic strategies.
Deputy Prime Minister Pakorn Nilprapunt clarified that earlier remarks about a loan decree were purely explanatory, focusing on legal procedures rather than indicating a firm policy direction.
Separately, Mr Anutin revealed he held informal discussions with Wang Yi during his recent visit to Thailand, covering areas of bilateral cooperation, including increased Chinese imports of Thai agricultural products, as well as investment and technology transfer.
Criticism has also emerged from opposition figures. Sirikanya Tansakun questioned the necessity of a 500-billion-baht package without a clear spending and repayment plan, calling for greater transparency amid concerns over fiscal sustainability and the economic outlook.