Finance Ministry: 400B Baht Loan Decree Essential, Transparency Measures Planned

Matichon•Economy•24d ago

Reader Briefing

Thailand's Ministry of Finance deems a 400 billion baht loan decree vital to combat economic and energy crises, implementing transparency measures and an independent review committee.

•The Ministry of Finance has confirmed the necessity of a 400 billion baht borrowing decree to address Thailand's economic and energy crisis.
•Existing budget allocations are insufficient to manage the immediate impacts and economic restructuring.
•Two specific ministerial notifications will be issued to ensure transparency and cost-effectiveness in project approvals.
•An independent committee will oversee and evaluate projects funded by the decree to ensure impartiality.

Overview

•The Ministry of Finance considers the 400 billion baht borrowing decree essential due to the severe global energy crisis impacting Thailand's economy.
•Existing funds from the FY2569 budget transfer (less than 50 billion) and central budget (20 billion) are insufficient, and the FY2570 budget is not yet effective.
•Finance Permanent Secretary Lavaron Sangsnit asserted the decree's necessity for urgent economic relief and restructuring.
•The 400 billion baht borrowing decree is planned to address insufficient funds for crisis mitigation and structural economic change.
•The Ministry of Finance will issue two notifications: one on project selection criteria and another establishing an independent review committee.
•Following the decree's approval and publication, two ministerial notifications will be issued to govern fund usage and oversight.
•A proposed 6-7 baht oil tax cut would reduce excise revenue by 200 billion baht, necessitating borrowing anyway.
•The Ministry of Finance opposes the oil tax cut due to the risk of a fiscal crisis compounding the economic crisis, potentially affecting investor confidence.

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Key Quotes

Lavaron Sangsnit

"The issuance of the borrowing decree is truly urgent due to Thailand's severe impact from the global energy crisis and insufficient available funds for rapid relief and economic restructuring."

การออก พ.ร.ก.กู้เงินมีความจำเป็นเร่งด่วนจริง เนื่องจากตอนนี้เศรษฐกิจไทยได้รับผลกระทบจากวิกฤตพลังงานโลกอย่างรุนแรง และแหล่งเงินต่าง ๆ ที่มีอยู่ไม่เพียงพอต่อการเยียวยาและปรับโครงสร้างเศรษฐกิจให้เห็นผลอย่างรวดเร็ว

Lavaron Sangsnit

"Ultimately, a law will still be needed to borrow money to offset the budget deficit, a path the Ministry of Finance disagrees with as it would cause a fiscal crisis atop a worsening economic crisis."

ท้ายที่สุดจะต้องออกกฎหมายเพื่อกู้เงินชดเชยขาดดุลงบประมาณอยู่ดี ซึ่งกระทรวงการคลังไม่เห็นด้วยกับแนวทางนี้ เพราะจะทำให้เกิดวิกฤตการคลังซ้อนวิกฤตเศรษฐกิจ

Key Entities

Person

Lavaron Sangsnit(นายลวรณ แสงสนิท)

Finance Permanent Secretary of Thailand's Ministry of Finance, who defended the necessity of a 400 billion baht borrowing decree.

Organization

Ministry of Finance(กระทรวงการคลัง)ℹ️

The Thai government ministry responsible for financial and economic policy, which is advocating for a 400 billion baht borrowing decree.

Excise Department(กรมสรรพสามิต)

The Thai government department that would experience revenue loss from the proposed oil tax cut.

Law

400 Billion Baht Borrowing Decree(พ.ร.ก.กู้เงิน 4 แสนล้านบาท)

A proposed royal decree in Thailand to borrow 400 billion baht for economic and energy crisis mitigation.

Timeline

2026(ปี 2026)

The Thai fiscal year mentioned in the context of budget transfers and available funds.

2027(ปี 2027)

The upcoming Thai fiscal year mentioned in relation to budget availability.