Dr. Ekniti insists that borrowing 4 billion baht to combat the economic tsunami is not a blank check.

Dr. Ekniti revealed that the 4 billion baht loan decree is a shield against an economic tsunami, emphasizing that it's not a blank check. He explained that the reason for not reducing the excise tax on oil is because it's not cost-effective. He stressed the need to accelerate the transition to clean energy before it's too late, pointing out that medicine acts slowly and must be taken quickly. He argued that if the transition had been made during the Russia-Ukraine crisis, the situation wouldn't be so dire today.

14 May 2569 Dr. Ekniti Nitithanpraphat, Deputy Prime Minister and Minister of Finance It has been revealed that the situation Thailand is currently facing differs from the 2540 currency and financial crisis, or the 2552 crisis which originated from external factors. This crisis is occurring in waves, starting with the prolonged war, followed by an energy crisis due to soaring oil prices and shortages. High oil prices impacted transportation and production costs, leading to inflation and a noticeably high cost of living.

Therefore, if this cycle is not addressed quickly, it will lead to an economic downturn and unemployment, as small businesses will be unable to bear the rising costs and will be forced to close down. This is the reason behind the issuance of the Emergency Decree for borrowing 400,000 billion baht, which is divided into funds for relief efforts and the energy transition.

"Right now, I'm sick, and the symptoms are different. We've seen that today it's like cancer in stages 1, 2, and 3. If we let it go, it will get progressively worse."

Regarding the crucial question of whether using loans to transition to clean energy is urgent, Dr. Ekniti revealed that there is currently a need for this transition because Thailand faces a high energy risk, having to import 60% of its energy and natural gas for electricity generation. If this change is not implemented quickly, the high energy cost structure will continuously impact electricity prices and the cost of living for the public.

"The transition takes time, but if we don't start today, it will be too late. Like China, which is hardly affected by this energy crisis because they've been preparing for the transition for decades. In treating illnesses, the slower the effect, the sooner you need to take the medicine. Waiting to rely on the 2570 budget for the transition might be too late; people might die before they even receive the medicine."

Regarding the reason for not using the method of reducing the excise tax on oil, Dr. Ekniti revealed that, as a former Director-General of the Excise Department, reducing taxes during the Russia-Ukraine crisis resulted in the government losing over 180,000 billion baht in revenue. Ultimately, the government had to borrow money to compensate for this loss. Currently, the regular budget is already at its deficit limit. Therefore, issuing an emergency decree to borrow money is a better solution.

"From our reduction of excise tax on oil during the Russo-Ukraine war, we learned that tax reductions were not cost-effective and did not yield the desired results. If we keep having to answer questions or being asked why we didn't do the old way again, even though we know it doesn't work, it means we haven't learned anything from the past crisis. If we had changed during the Russo-Ukraine crisis, we wouldn't be in this situation today."

Furthermore, reducing excise taxes is a blanket aid, benefiting those with higher financial means. Therefore, given the limited budget, it would be more effective to allocate funds to targeted programs that specifically address the needs of vulnerable groups.

“I emphasize that this emergency decree for borrowing money is used for relief efforts coupled with the energy transition to clean energy. I affirm that this emergency decree is for economic stability, preventing job losses and preparing a protective barrier against the impending economic tsunami—a crucial aspect of national security. This emergency decree provides both painkillers (relief measures) and the necessary nutrients. However, these remedies are ineffective; once their effect wears off, the patient may relapse if the energy crisis or conflict persists. Therefore, we must provide the necessary vitamins—the transition itself—to strengthen Thailand's economic structure and prevent a recurrence of future crises.”

Dr. Ekniti affirmed that the Emergency Decree for borrowing 400,000 billion baht is not a blank check, as it has a clear objective: relief and transition. Furthermore, there is a verification mechanism in place, with a screening committee chaired by the Permanent Secretary of the Ministry of Finance, responsible for reviewing projects requesting funding from the loan.

"Projects that will utilize funds from the 400,000 billion baht loan decree, such as the 'Thai Help Thai Plus' program or the Ministry of Transport's project to replace transport vehicles, must be submitted to the committee for consideration before the funds are disbursed. It's not a matter of simply providing funds without project details."

Regarding the Thai Help Thai Plus project, Dr. Ekniti confirmed that it remains a targeted measure to ensure the efficient use of limited loan funds. The project's goal is to assist small-scale individuals, such as market vendors or small shop owners who are struggling with income and the cost of living.

Dr. Santithar Sathienthai, Assistant Minister of Finance. It was revealed that the current economic situation is risky, and assessing the economic situation cannot rely solely on GDP figures. The latest data from the Bank of Thailand (BOT) shows that even if the country's GDP doesn't turn negative, labor income is projected to be negative in 2569, which is unusual as this income segment has historically shown positive growth.

"Under normal circumstances before the COVID-19 pandemic, Thailand's labor income growth rate was around 4.7% – 4.8%. However, last year, growth slowed to only 1% – 2%, and there is a possibility of negative growth this year, which will have a severe impact on purchasing power."

Read news related to the economic situation across Thailand here.