Bangkok: Today at the Parliament building, Mr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, concluded the debate on the Emergency Decree authorizing the Ministry of Finance to borrow money to manage the impact of the energy crisis and initiate a national energy transition in 2026. Ekaniti emphasized that the government is not borrowing excessively but will use the funds wisely and transparently to repair the roof of Thailand's economy.
According to Thai News Agency, Mr. Ekniti stated that the government attentively listened to the opinions of all members during the debate, which included both agreements and disagreements, as well as some potential inaccuracies. The most critical issue discussed was whether the current energy crisis was severe enough to warrant such measures, a problem that the Constitutional Court has recognized as a matter of economic security by a majority vote.
The economic data from the second quarter confirms the crisis's severity, occurring in three distinct waves. The first wave involved the energy sector, with global diesel prices increasing by approximately 60%. Despite government subsidies, domestic prices rose by around 30%. The second wave saw a rise in the cost of living and goods, with inflation increasing to almost 3% and average costs rising by approximately 10%. The third wave involved a contraction in purchasing power, with consumption in the second quarter decreasing compared to the first quarter. Mr. Ekniti highlighted that without prompt action, the crisis could lead to business closures, unemployment, and long-term economic difficulties.
Regarding differing opinions on the energy transition, many see it as a long-term issue that can be gradually implemented. However, the second-quarter current account deficit of nearly 600 billion baht reflects the vulnerability caused by large imports of oil and natural gas. Mr. Ekniti likened Thailand to a house with a leaky roof, emphasizing the need to reduce the country's reliance on imported energy by investing in domestic resources.
The emergency decree has two simultaneous goals: to support those affected today, including welfare card holders, middle-income groups, small business owners, transporters, riders, and motorcycle taxi drivers; and to use the energy transition budget to strengthen the Thai economy. The government has made transparency a core principle in the project screening process, ensuring that every project is beneficial to the public, cost-effective, transparent, and aligned with the objectives of the Emergency Decree.
Mr. Ekniti noted that the absence of ready-made projects demonstrates prudence, as proposing projects without thorough planning would be concerning. The Emergency Decree's objectives are clear: mitigating impacts, reducing reliance on energy, and building new skills for Thai people. The government aims to utilize domestically produced oils, such as biodiesel from palm oil and ethanol from sugarcane and cassava, to benefit farmers and the public.
Mr. Ekanit clarified that the emergency decree is not about borrowing large sums of money and paying interest, but rather borrowing gradually as needed. He affirmed that Thailand maintains fiscal discipline, with credit rating agencies continuing to have confidence in the country, and that Thailand's borrowing costs are low. The government under Prime Minister Anutin Charnvirakul aims to support the people and the economy today, while transitioning to clean energy and investing for the future, to make Thailand stronger after the crisis.