Economic stimulus committee postpones meeting due to unfinished screening of projects

The Economic Stimulus Project Policy Committee (ESPPC) has postponed its scheduled meeting on Wednesday, as its subpanel has not yet completed the screening of proposed stimulus projects, according to Deputy Prime Minister and Finance Minister Pichai Chunhavajira.

Postponement due to incomplete project screening

Speaking to reporters after the weekly Cabinet meeting, Pichai explained that the ESPPC's meeting would be postponed until further notice, as the subcommittee had not finalised the details of how to allocate the 157 billion baht economic stimulus budget. The delay comes as the committee ensures that all projects meet the necessary criteria for funding.

Ensuring proper and lawful use of the fund

Pichai emphasised the importance of spending the fund lawfully, stating that projects proposed for the allocation must be screened to ensure they meet the fund's criteria. "We are not in a rush. This fund has to be spent correctly. I have preliminarily checked the proposed projects and asked the relevant agencies to review any that appear to be unsuitable," Pichai added. Once the details are finalised, the ESPPC will convene to approve the projects.

Discrepancy between requests and available funds

Deputy Finance Minister Julapun Amornvivat noted that while the stimulus fund stands at 157 billion baht, requests for funding from various projects have totalled over 400 billion baht. These proposed projects include road building, water resources development, and local administration projects.

Revised criteria for project selection

Julapun explained that the subcommittee responsible for screening the projects would redefine the criteria to ensure that only eligible projects are approved. For example, water resource projects will only be approved for areas that have previously been affected by drought, while new road projects must demonstrate the ability to enhance the competitiveness of local businesses. Additionally, projects with a budget below 500,000 baht will be rejected to ensure transparency in the e-bidding process.

Transparency and fiscal responsibility

Prime Minister Paetongtarn Shinawatra reiterated during the Cabinet meeting that spending from the 157 billion baht fund must be transparent. She also reminded coalition partners that MPs should refrain from violating the constitution by seeking allocations to support or initiate personal projects during the vetting of the fiscal 2026 budget bill.

Potential impact of US trade barriers

Julapun also mentioned that not all of the 157 billion baht may be allocated for investments. Some of the funds could be used to mitigate the impact of US trade barriers on certain industries. The government anticipates that the effects of increased US import tariffs will be felt starting in the third quarter of 2025. He also revealed that trade talks between the US and Thailand could resume soon, with the US potentially imposing at least a 10% import tariff on Thai products. Thailand, however, will strive to ensure that its exports do not face a disadvantage compared to competing nations.