Council of State secretary-general Atchaporn Jarujinda on Friday confirmed that the government's 2-trillion-baht borrowing bill did not violate Section 169 of the constitution.
The section stipulates the payment of state funds will be made only when it has been authorised by the appropriate law.
The assertion came after Law Reform Commission of Thailand chairman Kanit na Nakorn said on Wednesday that the government's 2-trillion-baht borrowing bill was unconstitutional.
The bill enables the Finance Ministry to take out a loan, and the borrowed money would be considered state money which needed to be included in the fiscal budget bill instead, he said.
But Mr Atchaporn said the money would be borrowed for a specific purpose and it is not included in the fiscal budget.
The bill was rolled out to allow the government to borrow 2 trillion baht to sponsor infrastructure development projects.
Pheu Thai Party-list MP Chawalit Wichayasut said that Mr Kanit's comment risked stirring up political confrontation.