Thailand presses ahead with ฿175 billion stimulus borrowing as economy slows under global pressure. Meanwhile, 133 MPs challenge a ฿400 billion Emergency Decree at the Constitutional Court. However, borrowing continues as the court gave 7 days for reply but no suspension, with the June 1 rollout still on track.
Thailand is pushing ahead with a ฿175 billion borrowing plan to fund a stimulus programme aimed at reviving a slowing economy hit by global pressures, including disruption linked to the Middle East War, even as 133 MPs take the government to the Constitutional Court over a 400 billion baht Emergency Decree. The court has ordered the Cabinet to clarify its position within seven days, but did not suspend the borrowing, allowing financial preparations and bank bidding to continue ahead of a planned June 1 disbursement under the “Thai Help Thai Plus” scheme.
Thailand’s government and the Ministry of Finance are pressing ahead with plans to borrow 175 billion baht. The programme is designed to support a new stimulus package. It aims to reinforce growth during an economic slowdown.
The slowdown is linked to global pressures, including disruption tied to the Middle East War. However, implementation continues despite legal scrutiny from the Constitutional Court.
The Constitutional Court has accepted a petition filed by 133 Members of Parliament. The MPs represent at least one-fifth of the House of Representatives. They are challenging the Emergency Decree authorising 400 billion baht in borrowing. Moreover, the petition argues the decree is unconstitutional under Section 172, paragraph one. The court has accepted the case under Section 173, paragraph one. It has also ordered the Cabinet to provide clarification within seven days.
Government presses ahead with ฿175 billion borrowing amid constitutional court challenge
However, the court did not order any suspension of the borrowing process. That detail has become central to government interpretation. Consequently, officials say administrative and financial steps may continue.
At the same time, the Ministry of Finance is preparing its formal response. The clarification will be submitted within the court’s deadline. Therefore, legal proceedings and fiscal preparations are moving in parallel.
Meanwhile, the Public Debt Management Office (PDMO) is preparing the first tranche of borrowing. The tranche is valued at 175 billion baht. It falls under the “Thai Help Thai Plus” programme. In addition, it is part of a wider 400 billion baht borrowing framework. The funds are scheduled for use by June 1. As a result, agencies are advancing disbursement plans.
According to PDMO Director Ms. Jindarat Viriyathaveekul, financial institutions will be invited to bid next week. This notice will formally open the lending process. Furthermore, the borrowing will be structured in multiple instruments.
Finance ministry invites banks to bid for the structured promissory note borrowing programme plan
Initially, promissory notes will be issued with maturities of three to five years. These will be deployed in monthly tranches of around 35 billion baht.
Specifically, the issuance schedule spans four months. Therefore, total promissory note issuance is expected to reach approximately 140 billion baht. In addition, an extra 35 billion baht will be raised separately.
This portion will come from long-term loans from financial institutions. These loans will also carry maturities of three to five years. Consequently, the structure combines short and medium-term borrowing tools.
Moreover, Ms. Jindarat confirmed that disbursement planning is already underway. The bidding process is in progress across participating institutions. As a result, the first disbursement remains targeted for June 1. It will continue through the end of the 2026 fiscal year. In addition, the structure allows flexibility for additional issuance if needed.
Promissory note issuance reaches ฿140 billion with monthly tranches and a long-term loans plan
Furthermore, she noted that extra promissory notes may be issued. This would occur if further projects are approved under the same framework. Therefore, the government retains operational flexibility within the borrowing ceiling. The structure is designed to respond to changing fiscal demands.
At the same time, political and legal scrutiny continues over the borrowing authority. On May 18, 2026, the Constitutional Court formally accepted Case No. 11/2026. The case involves 133 MPs challenging the Emergency Decree.
They submitted their petition through the Speaker of the House. Consequently, the court initiated constitutional review procedures.
The petition claims the decree violates constitutional provisions. Specifically, it cites Section 172, paragraph one of the Constitution. However, the court ruled that the case meets procedural requirements. It therefore accepted the petition for full consideration. In addition, it invoked the Constitutional Court Procedure Act B.E. 2018.
Court orders the cabinet to clarify within 7 days, while no suspension was ordered on borrowing process
Furthermore, the court ordered the Cabinet to submit explanations and supporting documents. These must be delivered within seven days of receiving notification. However, no order was issued to halt borrowing activities. As a result, government agencies continued preparatory steps without interruption.
At Government House, Minister attached to the Prime Minister’s Office, Mr. Paradorn Prissananantakul, addressed the situation at 4:10 pm on May 18. He confirmed the court’s acceptance of the petition. Moreover, he emphasised that no suspension order had been issued. Therefore, he stated that borrowing procedures could proceed as normal.
In addition, he confirmed that the Cabinet retains authority under the Emergency Decree. He stated the government would comply with the seven-day clarification requirement. Furthermore, he noted that internal discussions with senior officials were ongoing. However, he had not yet met Deputy Prime Minister Pakorn Nilapraphan.
Meanwhile, he addressed questions about possible delays. He confirmed that the registration schedule for the “Thai Help Thai Plus” programme remains unchanged. Therefore, registration set for May 25 will proceed as planned. Consequently, the rollout timeline remains intact despite the legal review.
Finance ministry prepares submission as bidding continues and June 1 disbursement target remains
At the same time, the Ministry of Finance is preparing formal documentation for submission. This response will address the Constitutional Court’s questions directly. In parallel, financial authorities are continuing operational planning for loan issuance. The PDMO is moving forward with the bidding process involving financial institutions.
Moreover, disbursement timelines remain firmly scheduled. The first funds are expected to be released by June 1. These funds will support the initial phase of the stimulus programme. Therefore, fiscal operations are advancing alongside legal proceedings.
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In addition, the borrowing structure continues to follow a phased model. Promissory notes account for the majority of early funding. Long-term loans supplement liquidity requirements. Consequently, the total initial borrowing reaches 175 billion baht under the programme.
Ultimately, the 400 billion baht framework remains under constitutional review. However, administrative implementation continues in parallel. The Cabinet must submit clarifications within seven days. Meanwhile, financial institutions prepare for participation in the bidding process. As a result, both legal scrutiny and fiscal execution proceed on separate but simultaneous tracks.
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