Finance Ministry Affirms 400 Billion Baht Emergency Decree Loan is Necessary and Transparent at Every Step
Thailand's Finance Ministry says a 400 billion baht emergency loan is necessary to address the global energy crisis and fund clean energy reforms, with all spending to be tracked transparently through public disclosure and independent overs
Finance Ministry Permanent Secretary Lawaron Saengsonit has confirmed that issuing a royal decree to borrow 400 billion baht is urgently necessary, insisting the decision is legally sound and the funds will be used efficiently. The borrowing will support both immediate relief measures for citizens and structural economic reforms to transition from fossil fuels to clean energy.
The finance ministry determined that the emergency loan is truly necessary because Thailand's economy is being severely impacted by the global energy crisis, and existing funding sources are insufficient to provide swift relief and economic restructuring. The ministry has already reviewed alternative funding options, including budget transfers under this fiscal year's act, which total less than 500 million baht, and mid-year budget reserves of only 200 million baht. Meanwhile, next year's budget won't take effect for another five months, making it impossible to address the economic emergency through normal channels. Therefore, the emergency loan decree is essential.
Regarding proposals to reduce fuel excise taxes by 6-7 baht per liter, the finance ministry notes this would eliminate 2 billion baht in revenue for the Revenue Department and create a revenue shortfall, ultimately requiring another emergency borrowing decree to cover the deficit. The ministry opposes this approach as it would compound the fiscal and economic crises, damaging investor confidence and credit ratings.
Permanent Secretary Lawaron stated that the 400 billion baht loan has been designed for maximum efficiency and transparency. After the royal decree is submitted to the throne and published in the Royal Gazette, the Finance Ministry will issue two announcements: first, establishing criteria and conditions for projects seeking loan funds, with careful review by economic agencies and a public website displaying all approved projects; second, establishing an oversight committee to evaluate loan-funded projects, comprising mostly independent members outside the ministry to ensure impartial assessment and eliminate any perception of self-oversight.
