Thai Prime Minister (PM) Prayut Chan-o-cha is urging state agencies to ramp up their capital spending in the remaining days of the fiscal year to help fuel the economy.
On Sunday, the PM was quoted as saying through deputy government spokeswoman Traisuree Taisaranakul that he was keen to see state funding being injected into the economy “as quickly as possible” as the new fiscal year begins in October.
The government is betting on a high budget spending this year, as it stands key to economic growth after getting battered by the effects of the global pandemic.
According to Taisaranakul, Chan-o-cha told his Cabinet members that state agencies played an active role in disbursing funds to stimulate the economy.
“In light of the pandemic, the state budget provides an important impetus to move the economy forward,” she said as reported by Bangkok Post.
According to the report, state agencies have drawn large budgets from general spending, the central fund, and the budget generated by the one-trillion-baht Covid-19 relief and reconstruction loan.
The one trillion baht was the first Covid-19 relief loan the government obtained last year, while another 500-billion-baht loan secured the green light of the parliament this year for the execution of relief and pandemic aid projects.
As of the end of August, some 269 projects amounting to 996 billion baht or 99 percent of the loan, had been approved
However, the actual disbursement of funds to implement the projects stood at 841 billion baht.
Most of the funds, amounting to 684 billion baht, were allocated to 20 projects aimed at providing compensation for losses or reduction of personal incomes from the pandemic and helping other groups such as farmers.