Prime Minister Anutin Charnvirakul has defended an executive decree in the House of Representatives, authorising a 400-billion-baht loan, calling the move an essential response to an unprecedented energy crisis sparked by the ongoing conflict in the Middle East.
Addressing the House during a session chaired by House Speaker Sophon Zaram, Anutin explained that Thailand imports 50% of its oil from the Middle East. Supply chain disruptions and the potential closure of the Strait of Hormuz have dramatically increased global fuel prices and caused domestic shortages, threatening the nation's economic stability.
“Existing annual budget mechanisms are insufficient to handle the multi-layered crisis,” according to Anutin.
He added that with only 50 billion baht left in emergency reserve funds, following relief efforts for natural disasters and security spending along the Thai-Cambodian border, the government faces an urgent shortfall to meet 140 billion baht in additional “immediate obligations.”
To reduce dependence on imported fossil fuels, he explained that the 400-billion-baht emergency funding will be channelled into mitigating living and operational expenses for citizens and businesses, supporting a nationwide shift towards domestic renewable energy and upskilling the workforce to adapt to the country's broader energy transition.
Addressing opposition concerns over the country’s fiscal health, Anutin assured lawmakers that the government remains fully committed to strict discipline, transparency and value for money.
Borrowing will be from domestic sources under the ‘5T’ framework, which guides public sector borrowing, deficit budgeting and fiscal management, with loan approvals routed through a specialised screening committee to prevent duplicate spending and ensure strict alignment with statutory objectives.
The Finance Ministry will have until September 30 next year to issue debt instruments or sign loan agreements.
Anutin noted that total public debt will remain safely within the legally mandated limit of 70% of GDP, expressing full confidence in the government's ability to manage debt systematically, servicing for both principal and interest.
