Govt to inject Bt304 billion into economy
The government will inject Bt304 billion into the economy and pump Bt20 billion into the central budget in an attempt to stimulate employment in the manufacturing and rural sectors.
It is hoped the move will result in the targeted economic growth of 2 per cent this year being achieved.
Krisada Chinavicharana, Fiscal Policy Office (FPO) director-general, said: "The Thai economy could continue with the public investment in the latter half of 2015.
"However, from now to the first six months of 2015, troubled Thai exports will affect the overall economy despite some improvement in consumption. What we could do is to launch short-term economic stimulus without any impact on the country’s fiscal stance."
The announcement followed a joint meeting of economic agencies that looked to find short-term economic measures. The measures will be proposed to the government.
The agencies were the Ministry of Finance, the Bank of Thailand, the Budget Bureau, and the National Economic and Social Development Board.
Most of the measures will be executed through the acceleration of budget disbursement, particularly the remainder of funds awaiting disbursement in the 2014 fiscal year and previous years.
According to a Budget Bureau report, Bt304 billion is yet to be disbursed. Of that figure, Bt104 billion has been awaiting disbursement since 2005 and the rest is expected to be disbursed in the 2014 fiscal year.
"If the awaiting budget is accelerated into the economic system, the Thai economy could fully expand," Krisada said. "We hope the economy will expand 2 per cent this year as targeted."
He said the FPO wanted to create an immediate employment spike through ministerial projects.
He said that about nine projects could be implemented rapidly including upgrading the knowledge of vocational students to quicken their readiness to work, refurbishing community hospitals, establishing a fiscal database in rural areas and repairing roads.
Krisada said Bt80 billion in the central budget remained. Of the amount, Bt60 billion would be disbursed soon and it was possible to use the remaining Bt20 billion for aforementioned projects.
