Bangkok: Korn Chatikavanij has raised concerns over the government's plan to issue a 400 billion baht loan through an emergency decree, cautioning that while it may not be unconstitutional, it represents a fiscal risk that could elevate debt levels to a 70% ceiling. During a House of Representatives session, the Democrat Party Member of Parliament underscored the importance of thorough evaluation by the legislators, despite the Constitutional Court's ruling that the decree does not contravene the Constitution.

According to Thai News Agency, Korn referenced the Constitutional Court's decision on August 7th, which involved a 7 to 2 vote in favor of the decree's constitutionality. However, he emphasized that the decision to proceed with the loan rests with the members of the House. He noted that numerous experts, including former Prime Minister Abhisit Vejjajiva and former Finance Minister Teerachai Poovanaranubal, opposed the decree, arguing that the situation did not constitute a crisis of economic stability and lacked clear direction.

Korn outlined four critical questions for the government and the House to consider. Firstly, he questioned whether the nation is genuinely in a crisis, highlighting that previous crises such as the Tom Yum Kung crisis, the 2008 financial crisis, and the COVID-19 pandemic had clear emergency necessities. He argued that the current economic slowdown does not warrant bypassing the scrutiny involved in annual budget expenditures.

Secondly, Korn questioned whether the loan addresses the economic issues faced by the populace, citing low GDP growth, trade and current account deficits, negative real income growth, and high commodity prices driven by oil costs. He argued that borrowing for handouts or temporary subsidies fails to address these structural challenges.

Thirdly, Korn questioned the urgency of the project under Section 172, pointing out the impracticality of completing the proposed solar rooftop installations before the decree's expiration in 2027. He noted that the current installation capacity is limited to 100,000-200,000 households annually, far below the 500,000 to 1 million households targeted.

Lastly, Korn expressed concern over the impact on fiscal discipline and public debt, stating that current public debt levels are at 67% of GDP. He warned that the additional borrowing could push debt levels beyond the 70% ceiling, leaving future governments with limited fiscal flexibility to allocate necessary funds for investment.

Korn concluded by emphasizing the responsibility of Members of Parliament to prioritize the best interests of the people over mere legality. He stated that the emergency decree is not the solution to the nation's economic problems and declared that he, along with the Democrat Party and opposition parties, cannot support its enactment.