Finance Minister reveals borrowing of 2 billion baht, "borrowing will be done gradually as needed," emphasizing the importance of maintaining fiscal discipline.

The Finance Minister revealed the public debt management plan, which will see the Emergency Decree authorizing borrowing of 4 billion baht submitted to the Cabinet on May 19th. The first borrowing of 2 billion baht will be phased in gradually to avoid wasted interest. The plan also includes issuing Savings Plus bonds to allow retail investors to purchase them monthly.

12 May 2569 Dr. Ekniti Nitithanpraphat, Deputy Prime Minister and Minister of Finance It has been revealed that a public debt management plan will be submitted to the Cabinet meeting on May 19, 2569. This plan is adjusted to accommodate borrowing under the Emergency Decree on Borrowing of 400,000 billion baht. The reason this public debt management plan has not been submitted to the Cabinet meeting today is because it is still awaiting complete input from relevant agencies before being presented to the Cabinet.

The initial borrowing plan will be approximately 200,000 billion baht. The government will borrow the money gradually, according to the actual needs of each project, rather than borrowing a large sum and simply holding it, which would result in unnecessary interest payments.

Dr. Ekniti emphasized that this emergency decree for borrowing does not yet necessitate raising the public debt ceiling from its current level of 70% of GDP. He expects that the borrowing decree will increase the public debt ratio by 2%, bringing it to 68% by the end of fiscal year 2569.

Dr. Ekniti revealed that, in addition to the borrowing plan, the Ministry of Finance is preparing to issue Ministry of Finance savings bonds. These will be sold under the Savings Plus program as a way for individual investors to access them, with sales scheduled regularly every month.

"The loan amount and interest rate are still under consideration. Based on current market rates, a 10-year loan is approximately 2.2%, but there may be a small additional premium to incentivize savers."

Regarding the possibility of filing a petition with the Constitutional Court to rule on the 400,000 billion baht loan decree, Dr. Ekniti revealed that, according to the Constitution, the opposition can only file a lawsuit under Section 172 concerning economic security. Issues of urgent necessity fall under the authority of the executive branch.

"In the past, whenever an emergency decree for borrowing money was issued, the opposition would usually file lawsuits. This is considered part of each party's duty, and the opposition is entitled to do so under Section 173. However, I confirm that this emergency decree for borrowing money came into effect one day after its publication in the Royal Gazette."

Dr. Ekniti further revealed that the current situation is an economic security crisis because the world is facing a series of crises, including war, energy issues, and rising living costs. If left unchecked, there is a risk of stagflation, which, once it occurs, will be difficult to resolve.

“Initially, when I heard that the loan would be 500,000 billion baht, I was the one who reduced it to 400,000 billion baht because I didn't want to compromise fiscal discipline. Today, I want to strictly adhere to this principle because otherwise, people will start asking for this and that. I emphasize that I am maintaining fiscal discipline, and I have explained this to foreign countries. Today, the Public Debt Management Office reported that Japan's credit rating agency R&I has affirmed Thailand's credit rating outlook at stable, which reflects Thailand's fiscal discipline.”

Dr. Ekniti revealed that, in addition to the public debt management plan, a "Thai Help Thai Plus" project will be submitted to the Cabinet meeting on May 19, 2026. This project will integrate the existing "Half-Price Plus" scheme with the state welfare system to provide more comprehensive and systematic assistance. Initially, it will run for two months, with registration opening on May 25, 2026, and spending beginning in June 2026. The number of eligible recipients is still under consideration.

Read news related to the economic situation across Thailand here.