Thawee Declares 400 Billion Baht Borrowing: Who Benefits? Private Electricity and Oil Companies Rake in Profits While Citizens Bear the Debt Burden
The Thai government's 400 billion baht new borrowing, combined with existing debt, will push total public debt to 1.26 trillion baht this year, with critics arguing most funds benefit large private contractors in energy and transportation r
On May 7, 2025, Police Colonel Thawee Sadsong, leader of the Prachathai Party, posted on Facebook questioning the government's 400 billion baht new borrowing added to existing debt of 860 billion baht, totaling 1.26 trillion baht for the fiscal year. He asked directly: who really benefits, while ordinary citizens pay the price.
Amidst severe financial crisis, the government is pursuing massive borrowing through two main channels: issuing a new royal decree for 400 billion baht, ostensibly to assist people, farmers, and businesses affected by the energy crisis (200 billion baht), and to support renewable energy and skill development (200 billion baht). Combined with budget deficit compensation loans of 860 billion baht under the 2025 budget law, total borrowing for the year reaches 1.26 trillion baht.
Public debt stood at 12.23 trillion baht at the end of fiscal year 2024 (September 30, 2024) and reached 12.68 trillion baht by March 2025. Once the full 400 billion baht is borrowed, public debt by September 30, 2025 is projected to reach approximately 13.49 trillion baht, representing 68.97 percent of GDP (estimated at 19.5 trillion baht). The current debt ceiling is set at no more than 70 percent of GDP.
The decree borrowing is an executive power exercised by the Cabinet, which deemed it an "emergency requiring urgent action to maintain national economic stability." After Cabinet announcement, the decree must be sent to Parliament for consideration.
Public debt remains a nationwide concern as these loans carry average interest rates of approximately 2.95 percent annually. Analysis of 2024 Public Debt Management Act implementation reveals critical issues:
First, borrowed funds are misallocated and concentrated. Most annual borrowing goes to "budget deficit compensation" rather than revenue-generating investments as public debt principles suggest. Instead, funds support long-term state contracts or concessions to just a few private entities, with severe budget concentration observed.
Imbalanced investment from 2024 data shows that over 88 percent of investment loans concentrate in just two sectors: rail/transportation (48.52 percent) and energy/electricity (39.40 percent). Benefits flow to large businesses, with major projects monopolized by a few large contracting companies receiving continuous budget commitments. Top three contractors receive contracts valued at over 337 billion, 315 billion, and 117 billion baht respectively.
Second, there is geographical inequality. Large borrowings are allocated to major urban areas and existing economic zones, while grassroots economic investments such as water systems remain underfunded.
