Ekniti Projects 400 Billion Baht Loan to Boost Thai GDP Growth by Additional 0.8%
Thailand plans to borrow 400 billion baht to address an energy crisis and boost GDP growth by 0.8%, with relief payments to citizens beginning June 1 under the government's "Thailand Helps Thailand Plus" program.
Deputy Prime Minister and Finance Minister Ekniti Nitithanpraphasat revealed that the Fiscal Policy Office has modeled a royal decree authorizing the Finance Ministry to borrow up to 400 billion baht to address impacts from the energy crisis and facilitate the country's energy transition. All funds are projected to stimulate an additional 0.8% growth in Thai GDP, while inflation in 2027 is expected to remain at 1.5%. However, he emphasized that the primary objective is not economic stimulus but providing relief and alleviating burdens on citizens, SMEs, and business operators facing the current energy crisis.
The next steps include submitting the royal decree draft to the King for announcement in the Royal Gazette, then including it in the fiscal year 2569 borrowing plan for consideration by the Public Debt Management Committee before presenting to the Cabinet for review by May 12, 2569, with submission to Parliament on May 14 and Senate on May 18.
"The government must act immediately," Ekniti stated. "We've exhausted all budget options. The 2569 budget and budget transfers will yield less than 50 billion baht, while the central budget has only 20 billion baht remaining. The 2570 budget requires another five months. If we wait that long, people, farmers, and business operators will suffer severely, leading to reduced purchasing power, business closures, and unemployment. The government cannot allow this."
Ekniti confirmed that this borrowing will not require raising the public debt ceiling from its current 70% of GDP, as projections show Thailand's public debt will peak at 69% of GDP in fiscal year 2571 before gradually declining.
Ekniti expects the May 19 Cabinet meeting will approve the "Thailand Helps Thailand Plus" program, encompassing the "Half for All Plus" scheme and welfare card top-ups, funded through borrowing, central budget allocations, and budget transfers—all subject to a screening committee chaired by the Permanent Secretary of Finance.
He confirmed that citizens will definitively be able to access benefits under the Half for All Plus program on June 1 as the Prime Minister announced.
Finance Ministry Permanent Secretary Laweron Saengsonit expects government agencies to begin submitting funding requests under the royal decree next week, with Cabinet consideration possible from May 19 onwards. He confirmed that despite the 400 billion baht borrowing, the public debt ceiling will not exceed 70% of GDP during fiscal years 2570-2573.
