Court accepts petition challenging government’s B400bn borrowing decree 

Government to submit explanatory documents within seven days

Thailand’s ⁠Constitutional Court on Monday ​accepted a petition from the ​parliamentary opposition challenging the legality of a government emergency decree to borrow 400 billion baht (US$12.26 billion) to support the economy amid the fallout ​from ⁠the Middle East conflict.

The court in a statement said it has ‌instructed the government to submit explanatory documents within seven days.

The government approved the loan decree ⁠earlier this month, with half of the borrowing for mitigating the cost of living, largely through a consumer subsidy scheme, and the other half for ​supporting a transition to clean energy.

Finance Minister Ekniti Nitithanprapas ​earlier said the decree remains in effect and can still move forward.

When ​filing ⁠the petition, opposition People’s Party leader Natthaphong Ruengpanyawut said he ⁠supported the transition to clean energy, but “we do not agree with using an emergency borrowing decree.”

The finance ⁠minister said on Monday that ​the impact of the war will be felt in the current quarter after Southeast Asia’s second-largest expanded 2.8% ‌on the ⁠year, more than expected, ​in the first quarter of 2026.

The borrowed sum is among the highest in recent history, but below levels seen during the 1997 Asian financial crisis and the coronavirus 2019 (Covid-19) pandemic years.

Public debt stood at 66.4% of the country’s gross domestic product (GDP) in March, below the 70% ceiling, and the new loans will not breach the limit, Mr Ekniti said.

Thailand’s core inflation rate is forecast to reach 3% this year because of energy cost impacts, up from an earlier estimate of 0.3%.