Kosit banks on unused Bt100 bn
Deputy Prime Minister Kosit Panpiemras is sticking by forecasts that gross domestic product will expand more than 4 per cent this year, despite the University of the Thai Chamber of Commerce's recent announcement that it had cut its growth forecast to less than 4 per cent.
Kosit pointed out that the government still had unused funds in this year's budget of more than Bt100 billion to pump into the economy. Moreover, the Finance Ministry has raised the disbursement target from 85 percent to 93 per cent of the budget, he said yesterday after meeting with officials to discuss swifter budget disbursement. "The government wants to see the economy grow by more than 4 per cent," Kosit said. The interim government said it would increase public spending to offset declining consumption. The Bt100 billion Kosit pointed to represented about Bt80 billion from government agencies and Bt20 billion left in several funds. Kosit said he had asked that Budget Bureau Office and the Comptroller General's Department to speed up spending of funds in this year's budget. The government will focus on the investment budget, including land purchases and construction projects, and the regular budget can be disbursed according to plan, he said. More than 40 per cent of this year's budget has been disbursed, but this is still less than what was planned. There are positive signals, however, as the rate of disbursement picked up in February and March. Kosit said that four to five government agencies have drawn budgets that were short of target and that most of the delayed projects were large-scale ones. These agencies will be asked to adjust their plans by switching funding to projects that can be quickly expedited. The government plans to open the bidding for some of these projects by June 30. Deputy Finance Minister Sommai Phasee will be responsible for the acceleration of the budget disbursement. Deputy Transport Minister Sansern Wongchaum said the ministry would shift its investment priority to projects that were ready to go. For instance, logistics-related projects have been slow. Of the Bt4.5 billion earmarked for logistics development in this fiscal budget, only Bt200 million has been used. The twin-rail project under the responsibility of the State Railway of Thailand and the Port Authority of Thailand has been delayed and it is unlikely to be launched this year. The government, meanwhile, plans to decide next week which electric train routes to open for bidding.
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