Deputy PM Ekniti Explains 400-Billion-Baht Emergency Loan Decree; Seeks Cabinet Approval on May 14
Thailand's cabinet approved a 400-billion-baht emergency loan decree to address the energy crisis and support vulnerable communities, with Finance Minister Ekniti seeking formal approval on May 14 to fund relief programs and renewable energ
At noon on May 5, 2025, at Government House, Deputy Prime Minister and Finance Minister Ekniti Nitithamprasert announced that the cabinet had approved an emergency decree (Phra Ratchakamnut) authorizing the Finance Ministry to borrow 400 billion baht to address impacts from the energy crisis and facilitate the country's energy transition.
Nitithamprasert stated that the emergency is urgent due to Middle East instability affecting people globally, making swift action necessary to preserve the nation's economic security. The decree is issued under Article 172 of the Constitution and aligns with Article 53 of the 2561 State Finance Discipline Act, with expedited review by the Office of the Council of State.
The loan comprises two main programs:
Program 1: Relief for vulnerable communities, farmers, and business operators affected by the energy crisis under the "Thailand Helps Thailand Plus" initiative with 200 billion baht allocation. This aims to ease the cost of living and sustain economic activities, targeting low- and middle-income earners, farmers, and SMEs. It also reduces agricultural costs and supports continued business operations.
Program 2: Promotion of energy efficiency and support for the transition from fossil fuel dependency to renewable and alternative energy technologies, with 200 billion baht. Measures include reducing fossil fuel use, installing renewable energy systems, reducing greenhouse gas emissions, earning carbon credits, promoting eco-friendly vehicles, and establishing electric charging stations.
The objectives are: (1) resolve the cost-of-living crisis and aid affected vulnerable groups, and (2) turn crisis into opportunity by transitioning away from oil and natural gas dependency toward clean energy and the modern economy.
When asked about critics questioning the urgency, Nitithamprasert responded that the crisis is severe. The 2025 budget remaining is under 50 billion baht and the central budget reserve has only 20 billion baht remaining. The 2026 budget won't be available until October, making it insufficient. Therefore, the emergency decree is necessary, particularly the 200 billion baht for vulnerable groups, which also aids the energy transition by reducing costs and the nation's energy import dependency.
