Finance to tap local bodies' savings
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The Interior Ministry has agreed to unlock local administrative bodies' accumulated savings of over Bt300 billion, as part of the government's aim to inject more money into the sagging economy.
Finance Minister Apisak Tantivorawong said Interior Minister Gen Anupong Paochinda were briefed on the goal and was committed to act accordingly.
"We have no plan to use all the Bt300 billion. Only 30 per cent of it would be good," Apisak said. "The amount could be disbursed only if the Interior Ministry amends some rules. The spending is also geared for local projects."
He insisted that the government remains financially strong with high fiscal reserves. However, this pool of fund has been accumulated for over 10 years and it is idly parked in deposit accounts. If the fund could be used to improve infrastructure or develop tourist destinations, it could improve rural infrastructure and the economy as a whole.
Each year, local administrative bodies are located annual budgets from the central government, according to their investment plans. However, if some projects were delayed, the fund allocated to the projects is shifted to deposit accounts.
Deputy Prime Minister Somkid Jatusripitak hoped that the fund could keep the economy buoyant amid bleak export outlook.
