The kingdom’s Constitutional Court ruled that the government’s 400 billion baht (RM48.7bil) emergency loan decree was lawful, lifting uncertainty over state spending plans.
The loan was for a consumer subsidy scheme that started last month, and for financing green energy transition, but it was challenged by opposition lawmakers who argued that although they backed the clean energy policy, they disagreed with use of an emergency decree.
“The court finds that the loan decree is constitutional,” the court said yesterday in a statement.
Prime Minister Anutin Charnvirakul’s administration in May approved the borrowing decree in a bid to cushion a flagging economy from higher oil prices, splitting funds equally between relief measures – which include a 176 billion baht (RM21.4bil) consumer subsidy scheme – and funding for a longer-term shift towards clean energy.
“We are disappointed, but not surprised,” opposition leader Natthapong Reungpanawut said in response to the decision.
“We maintain the government does not need to issue an emergency loan decree because there is no urgency.”
He said clean energy programmes can use the fiscal budget without turning to emergency borrowing, adding that the government’s projects did not meet criteria for such a loan.
The government has insisted the borrowing decree is essential for the energy transition, citing Thailand’s heavy reliance on imported energy – equivalent to nearly 10% of gross domestic product – as a key vulnerability.
Only months into its four-year term, Anutin’s government is already facing discontent as a price shock driven by the conflict in Iran deepens Thailand’s farm debt crisis.
Thailand’s economy, the second largest in South-East Asia, expanded 2.4% last year, lagging regional peers, with 2026 economic growth forecast raised to 2.3%. — Reuters
