Caretaker Deputy Prime Minister Somkid Jatusripitak said economic conditions should have been taken into consideration when setting the election date.

He said the government's mega projects were stalled and that effective measures to deal with rising oil prices had yet to be prepared if crude oil rose above US$80 per barrel.

"If Thailand is run by a caretaker government for seven months the economy may get stuck and lag behind others while the world keeps moving forward," he said.

The Election Commission (EC) on Monday met with the main political parties and proposed an election date of October 22.

Somkid questioned whether the government had the right to approve Board of Investment projects and the capability of handling the fiscal budget for 2007.

PM's Office Minister Suranand Vejjajiva said the government could administrate under the fiscal budget for 2006.

National Economic Social Development Board secretary-general Ampon Kitti-ampon, speaking at the Cabinet meeting, said the government could implement economic stimulus packages that it had earlier approved in the second half of the year.

Cabinet secretary-general Borwornsak Uwanno said the caretaker government could approve any urgent measures so long as it could be explained that the country stands to lose out if they were not implemented.

Spokesman Surapong Sueb-wonglee said the Cabinet had not yet decided to issue a royal decree for the election because the EC had yet to officially endorse the decision.