Ek Niti Reiterates Need for Emergency Decree to Borrow 400 Billion Baht, Accelerate Energy Transition; Warns Inflation Could Reach 4-5% This Year

At 12:45 p.m. on December 11, 2025, at Government House, Deputy Prime Minister and Finance Minister Ek Niti Nitithanprasad addressed questions regarding the Thai Phak Prachaachon party's petition to the Constitutional Court challenging whether the 200 billion baht energy transition portion of the 400 billion baht emergency borrowing decree qualifies as urgent or crisis-necessary. He stated that Thailand's current economic situation faces a complex crisis with an unpredictable endpoint, primarily triggered by rising energy costs, as Thailand heavily relies on imported oil and natural gas. He noted that this energy dependency was discussed at ASEAN meetings, with Thailand among the energy-importing nations with high external energy dependence.

Ek Niti explained that Thailand's high energy reliance has driven inflation upward, with recent inflation at 2.9 percent and expected to rise to a peak of 4-5 percent due to increased commodity costs affecting cost of living and consumer prices, particularly food prices which have risen nearly 10 percent.

When asked whether the higher inflation had been coordinated with the Bank of Thailand to implement monetary measures, given that 4-5 percent exceeds the monetary policy target of 1-3 percent, Ek Niti responded that average inflation for the full year remains close to the established 3 percent ceiling, and this matter has already been discussed with the Bank of Thailand in a joint meeting of four economic agencies.

"The root of this crisis comes from energy, doesn't it? The crisis began with the war crisis and energy crisis. Today it's a cost crisis. We see the latest inflation figure at 2.9 percent. Thailand relies heavily on oil and natural gas, which we must import from abroad. Since we cannot produce oil ourselves, we must resolve this crisis," Ek Niti stated.

He further explained that the emergency decree to borrow funds is necessary to prepare for an escalating crisis, differing from the 1997 financial crisis or the Thaksin era which faced external crises. This time, he emphasized, the crisis directly affects people's livelihood and cost of living, requiring government preparation to prevent widespread impact.

Regarding questions about the Democrat Party's statement that credit rating agency Moody's praised Thailand's economy despite the government's borrowing plans, Ek Niti clarified that Moody's commendation stems from Thailand's strong international reserves position, but this is separate from internal domestic hardship issues the government must urgently address, necessitating the emergency borrowing decree.

Ek Niti stated that the government has established a "5T" strategic framework for loan expenditure screening to maximize efficiency: Targeted—addressing directly affected groups; Transition—easing people's burden while transitioning energy structure to reduce long-term import dependence; and Transform—reforming economic structure to strengthen people's resilience.