Prime Minister Announces Cabinet Approval for 400 Billion Baht Emergency Loan Decree, Pledges Strict Fiscal Discipline
Thailand's government secured cabinet approval for a 400 billion baht emergency loan to combat the energy crisis and ease living costs for low-income earners, farmers, and small businesses, with plans to transition toward modern energy infr
At noon on May 5, 2026, at the Phakdi Bodin Building of the Government House, Prime Minister Anusit Charnveerakul and the Interior Minister led a cabinet announcement regarding the government's decision to issue a Royal Decree granting the Finance Ministry authority to borrow 400 billion baht to address impacts from the energy crisis and facilitate the country's energy transition.
The decision stems from the Middle East conflict situation, which has severely impacted global energy prices and the economy. The crisis has spread from energy costs to food and living expenses—a situation that is neither normal nor one that can be postponed.
The Prime Minister stated that the government's duty is to prevent Thailand's economy from entering stagflation—a combination of high inflation and economic slowdown. Therefore, swift action is necessary, requiring the use of special instruments such as this Royal Decree under clear legal principles, qualifying as an urgent emergency case that cannot be avoided. The decree aims to relieve the burden on citizens' living costs and sustain economic activity.
Measures under this decree will target key groups requiring urgent assistance, including low-income and middle-income earners, farmers, small and medium-sized enterprises (SMEs), and sectors directly affected by rising energy costs.
Two parallel approaches will be implemented: First, providing relief by reducing living cost burdens on citizens while lowering production costs, particularly for agriculture through fertilizer and essential production input procurement. Second, structural transformation by seizing this opportunity to transition to modern energy, restructure the country's energy infrastructure, reduce fossil fuel dependence, ensure stable energy costs, and eliminate previous volatility.
The Prime Minister emphasized that this decree serves as a tool to guide the country through the crisis and establishes foundations for reducing future economic vulnerability while maintaining strict fiscal discipline. The solution will not eliminate global crisis impacts but will strengthen Thai people to cope better and help vulnerable populations weather this crisis together, ultimately positioning Thailand with maximum resilience for future challenges.
"The government is committed to standing with the people in solving problems arising from current global turmoil. We will do everything within our capacity to help people navigate this crisis successfully," the Prime Minister stated.
