House delays Bt400bn loan decree pending court ruling

House Speaker Sophon Zaram decided to put the government’s 400 billion baht loan decree on hold today, until there is a ruling from the Constitutional Court on its legality.

The government’s executive decree to borrow from domestic sources, to address the impacts of the current oil crisis and to overhaul the energy structure by migrating from fossil fuels to alternative and clean energy, has already been promulgated after its publication in the Royal Gazette on May 12.

Before the decree could be debated in the parliament, however, Opposition Leader Natthaphong Ruengpanyawut submitted a motion today, seconded by 135 opposition MPs, to House Speaker Sophon Zaram.

It challenges the legality of the decree and asks the Constitutional Court to rule on the decree’s legality vis-à-vis Section 172 of the Constitution.

As such, the House Speaker is duty-bound to delay debate pending a ruling.

The 400 billion baht loan is divided into 200 billion baht to help the people cope with the negative impacts of the global oil crisis, triggered by the armed conflict in the Middle East, with the remainder intended to drive the migration of Thailand’s dependence on fossil fuels to alternative clean energy.

On Tuesday, Prime Minister Anutin Charnvirakul insisted that the borrowing is necessary to help the people and he is not concerned about the Opposition’s move to block it.

The prime minister also said that the government has no “Plan B” in case the Constitutional Court rejects the decree.