Opposition MP Sirikanya Tansakul backs higher public borrowing to tackle the Trump tariff crisis but urges the government to revise its 2026 budget and present a clear recovery plan with strict oversight to prevent unchecked spending and waste.
On Sunday, Opposition People’s Party spokeswoman Sirikanya Tansakul held out a cooperative hand to the government. The key parliamentary performer said the impact of President Trump’s tariffs on Thailand’s economy warranted both a budget review and increased borrowing. Consequently, she said the opposition would support the required loan decree by the government. However, this was conditional on a carefully considered plan of action. In addition, Ms. Sirikanya called on the government to take back its 2026 budget and revise it given the changed outlook.
Days before Thai negotiators are due to engage with US counterparts in Washington DC, a key opposition leader in parliament is calling for dialogue with the government.
It comes amidst warnings last week from the Fiscal Policy Office and the Ministry of Finance about the country’s 2025 GDP performance. At the same time, the Bank of Thailand also made it clear that the country’s challenges were not limited to impeded exports to the United States.
Indeed, Thailand faced slower global economic growth and fiercer competition for its already struggling manufacturers. Meanwhile, the country maintains a sound external financial buffer.
Opposition prepares budget debate team as economic warning signs prompt call for fiscal reassessment
As parliamentary debate looms, preparations are already underway among opposition members. Ms. Sirikanya Tansakul, is a party-list MP and deputy leader of the Prachachon or People’s Party. She confirmed that her party is presently in the process of selecting key debaters to scrutinise the draft 2026 Budget Expenditure Act.
These internal selections are being conducted during the House of Representatives recess, with the expectation that final candidates will be ready to take the floor by the time of the first reading.
Notwithstanding this, it still faces potential risks if the economy sees a downturn or worse, a GDP contraction. On Sunday, People’s Party economic spokesperson Sirikanya Tansakul warned of a crisis. She said it could be as significant as the pandemic in 2020.
Therefore, she asked the government to consider relooking at the 2026 budget, which is due to be presented to parliament shortly. She acknowledged that opposition to the budget exists and many want to see revisions in light of the crisis.
Sirikanya urges government to withdraw 2026 budget and address the impact of the Trump tariff regime
Sirikanya explained that the opposition had already begun discussing the possibility of having the budget returned to the cabinet for amendment.
She said she would welcome a move to reconsider its current form, especially if it meant ensuring that the economic impacts of the escalating trade conflict with the United States are factored in. She stressed that the current draft might not adequately account for the deep and prolonged impact of US tariffs under the Trump administration, nor for the need to reform and restructure sectors of the Thai economy.
Thus, she suggested it would be best if the government withdrew it for review. Additionally, she confirmed that her party, the main opposition group, would support further public borrowing, specifically to address the Trump tariff crisis.
She also confirmed her support for an additional loan decree from the Treasury, should the government choose to pursue one. In her view, the financial response must be sizable to be effective. Consequently, a comprehensive plan is required. It must detail how the borrowed funds will support economic recovery and structural reform.
Opposition support for new borrowing hinges on clear oversight and targeted economic strategy
According to Sirikanya, the existing fiscal capacity is insufficient for the scale of support required. However, she made clear that her party would consider favourably such a measure in parliament. Of course, there must be transparency and clarity in how the money would be used.
However, she cautioned the government to proceed carefully. In particular, she recalled the unchecked spending by the previous Prayut Chan Ocha government during the COVID-19 crisis.
In that context, she warned against issuing what she called another “blank cheque”—a reference to what she sees as unmonitored emergency borrowing during the previous administration’s pandemic response. Her party, she emphasised, would insist on oversight and measurable outcomes if new borrowing were approved.
Furthermore, Ms. Sirikanya called for targeted measures aimed at revitalizing the economy and addressing structural issues. This might necessitate an increase in the debt ceiling under the State Fiscal and Financial Disciplines Act 2018. Presently government borrowing is 64-65% but is capped at 70%.
Budget revision urged to reflect trade war effects and align with shifting global economic realities
“But I say the government that the 2026 budget may not account for the impacts of the trade war. It might still be allocated as usual.
The government must aim to maximise the 2026 budget’s effectiveness. Therefore it must respond to changes in global trade. We believe it should be reconsidered and amended. Afterwards, it should be presented to parliament one to two weeks later,” said Ms. Sirikanya.
She indicated that a delay of one to two weeks in tabling the revised budget would not pose a problem. Certainly not for the opposition if it meant improving its relevance and effectiveness.
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The time could be well used to realign the budget in response to shifting global dynamics. This will include potential supply chain disruptions and foreign investment risks.
Certainly, Ms. Sirikanya and her party believe that the Trump tariff regime will broadly impact Thailand. Its effects may be felt for quite some time.
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Further reading:
Thaksin does not rule out joining talks in US as Thai team finalises plans. They fly out on Thursday
Trump’s remaking of World trade, if it works, will force Thailand to decide between the US and China
US offers a 90-day tariff pause but Thailand must move faster as it already faces shaved GDP in 2025
PM addresses the nation in shock over last week’s earthquake and this week’s Trump tariff bombshell
