Finance Ministry Proposes 400 Billion Baht Borrowing Framework at Cabinet Meeting Tuesday, Uses COVID Crisis Model Without Raising Public Debt Ceiling
Thailand's Finance Ministry will seek cabinet approval Tuesday to borrow 400 billion baht for economic recovery and the "Thai Help Thai" program, using a drawdown system modeled on COVID-19 emergency measures without raising the public debt
The Finance Ministry will present a royal decree for borrowing 400 billion baht to the cabinet on Tuesday, May 5, as a fiscal tool to absorb the impacts of the Middle East crisis, along with the 'Thai Help Thai' program. After economic agencies reviewed all available funding sources—including the 2025 budget management, central fund allocations, and emergency reserves—they determined that existing budgets were insufficient to handle the situation, prompting the decision to issue the borrowing decree. This domestic borrowing will be drawdown-based, used only as needed, mirroring the 1.5 quadrillion baht emergency borrowing during the COVID-19 pandemic. Regarding fiscal discipline concerns, the Finance Ministry confirms that the 400 billion baht borrowing will not require raising the public debt ceiling, currently set at 70% of GDP. Thailand's public debt in March 2025 stands at 66.38% of GDP based on an estimated 19.10 quadrillion baht. Following cabinet approval of the decree, the government will establish a 'Project Screening Committee' chaired by the Finance Ministry Permanent Secretary to evaluate and filter project proposals from state agencies for maximum value. Relevant agencies must expedite preparing detailed plans and justifications for the decree to present to parliament for legislative approval.
