BANGKOK (Bernama): The Thai government is considering issuing an emergency decree to borrow up to 500 billion baht (RM61.61 billion) to prepare for potential economic and security crises, Deputy Prime Minister Pakorn Nilprapunt said on Monday.
Pakorn said the move is being assessed under the government’s constitutional authority, which permits the issuance of an emergency decree in urgent situations affecting national security or the economy.
He noted that under Section 172 of the Constitution, such a decree may be enacted when there is an immediate necessity but must subsequently be submitted to the House of Representatives at the earliest opportunity.
"The current situation requires urgent action as the country faces multiple risks, while fiscal resources remain limited and tight,” he said in a statement.
Pakorn highlighted growing external uncertainties, including geopolitical conflicts and environmental challenges such as the Super El Niño phenomenon, which could impact agricultural output and the wider economy.
He said the government needs to maintain sufficient financial reserves to respond swiftly to emergencies, although actual borrowing may not reach the full 500 billion baht ceiling.
"Under public debt management principles, the government must first expand its borrowing capacity to the full amount stipulated in the law,” he added.
Pakorn said the government may also pursue a Budget Transfer Act in parallel to strengthen financial readiness in dealing with potential crises.
He added that the borrowing plan would require raising the public debt ceiling from the current 70 per cent of gross domestic product (GDP), with Thailand’s public debt currently at about 66 per cent.
The Ministry of Finance will determine a new ceiling as fiscal space narrows.
Separately, Pakorn said a proposal to allow the Finance Ministry to guarantee loans of up to 150 billion baht for the Oil Fuel Fund remains under review, noting that prolonged subsidies have pushed the fund’s debt above 100 billion baht, beyond its original role as a short-term stabilisation tool.
-- BERNAMA
