Thailand’s Constitutional Court has ruled that the government’s 400-billion-baht emergency loan decree is constitutional, allowing the borrowing programme to proceed. The judgment, delivered on July 9, 2026, clears the way for funding aimed at easing the impact of the energy crisis while supporting Thailand’s long-term transition to cleaner energy. Get today's headlines by email The decree was challenged by opposition MPs, who argued it did not satisfy the “urgent and unavoidable” conditions required under Section 172 of the Constitution for an emergency decree. They claimed the government should instead have used the normal budget process for the borrowing plan. The legal challenge was led by Natthaphong Ruengpanyawut, leader and party-list MP of the People’s Party, together with Korn Chatikavanij, party-list MP and deputy leader of the Democrat Party. The Seri Ruam Thai Party also supported the petition, which House Speaker Sophon Saram referred to the Constitutional Court after 133 MPs signed the request under Section 173. The court examined the decree in two parts. It unanimously ruled that the first 200 billion baht, allocated for immediate relief measures, complied with the Constitution because it addressed economic security by helping households, farmers and businesses affected by volatile energy prices. The relief package includes the Thai Chuay Thai Plus 60/40 scheme, an increase in monthly state welfare payments from 300 baht to 1,000 baht per recipient, and assistance for farmers and SMEs to reduce production costs and maintain business stability. The remaining 200 billion baht is earmarked for energy transition projects, including renewable energy, electric vehicle infrastructure, nationwide EV charging stations, carbon credit initiatives and green skills development. This section was approved by a 7-2 majority after the court concluded it strengthened Thailand’s long-term energy security and reduced dependence on fossil fuels. The majority judges were Nakharin Mektrairat, Udom Sittiwirattham, Wirun Saengthian, Noppadon Theppitak, Bunjongsak Wongprachaya, Sumet Roykulcharoen and Sarawut Songsivilai. Judges Jiraniti Havanon and Udom Rathamarit dissented, arguing that the energy transition programme did not meet the constitutional requirements for an emergency decree under Section 172. The government argued the decree was necessary because conflict in the Middle East had threatened energy security and increased costs for a country heavily dependent on imported energy. The ruling means the entire 400-billion-baht borrowing plan remains legally valid and can now move forward. The Nation reported that the Constitutional Court also announced that it had considered seven cases during its July 9 meeting. Among them was a petition challenging aspects of the Senate selection process, but the court ruled that matter had already been decided through the Court of Justice and the Administrative Court, preventing further constitutional review. Join the discussion? 10 July 2026
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