Thailand's cabinet has signed off on an emergency decree allowing the government to borrow up to 400 billion baht to cushion rising living costs linked to the Middle East conflict, the Nikkei Asian Review reported Wednesday.
The move is set for parliamentary review next week under fast-track constitutional provisions, with the government citing risks of stagflation as justification, according to the report.
Half of the funds will be directed toward subsidies for low- and middle-income households, farmers, and vulnerable groups, while the remainder is earmarked for longer-term reforms including renewable energy rollout and electric vehicle support. A finance ministry-led committee will oversee disbursement, Nikkei reported.
The decision follows energy disruptions tied to tensions involving Iran, which have pushed up fuel and transport costs in Thailand, heavily reliant on Middle Eastern imports. Authorities have cut 2026 growth forecasts to 1.6%, while private estimates are even lower, warning of stagflation risks. Public debt now stands near 66% of GDP, its highest since the late 1990s.
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