Finance Minister Ekniti Nitithanprapas has reiterated the need for the 400-billion-baht emergency loan decree to provide relief measures and support the country's economic transition, noting even the International Monetary Fund (IMF) and the World Bank view the global economy as being in crisis.Although Thai GDP has not contracted, the global energy crisis has driven up the cost of living, reflected by inflation in April soaring to 2.9%, with May expected to rise even further, he said.
"If we do not act quickly before the crisis spreads, it will be followed by an economic contraction and unemployment, especially among small businesses. As production costs rise, businesses are forced to lay off workers. Therefore, it is necessary to break this cycle," said Mr Ekniti.
The secondary purpose of the borrowing is to help Thailand transition from fossil fuels to clean energy such as solar cells. In response to opposition parties saying the government could simply wait five months and use the 2027 fiscal budget instead, he said the country is sick and nobody knows when the energy crisis will end.
"We must take the medicine today because it will help Thailand transition, though it takes time to produce results. If we had begun transitioning our energy use during the start of the Russia-Ukraine war, we would likely not be suffering from the energy crisis today," said Mr Ekniti.
