At least 350 billion baht worth of state budget will be injected into the economy in the final two months of the fiscal year, making 3.2% economic growth still possible if no more negative factors emerge, says Finance Minister Sommai Phasee.
"At the moment, 3% would be good. If conditions remain unchanged throughout the year, growth could come in at 3.2%," he said after chairing a committee to push investment and economic stimulus measures.
The fiscal year ends on Sept 30.
As of last Friday, 2.04 trillion baht or 79.2% of the 2.575-trillion-baht budget for this fiscal year had been drawn down. The government has targeted 96% of the annual budget to be disbursed.
Sommai: Further rate cuts will not help
For the investment budget, 236 billion baht or 52.6% of the 449-billion-baht budget had been taken out, higher than 46% and 47% in the same period of fiscal 2014 and 2013, respectively.
The Government Pension Fund is liable to pay 70 billion baht to 249,000 state officials deciding to opt out from being members and another 1.02 billion in pensions, adding liquidity to the economy.
Budget disbursement has been slower than targeted. The Fiscal Policy Office slashed this year's growth forecast to 3% this week from 3.7% in April after exports flopped in the first half.
In another development, Mr Sommai said further interest rate cuts would not help to revitalise the country's economy since the slowdown was due to the global economic recession.
Thailand's economy is in a U-shaped recovery, he said. The government hopes farm prices will rebound in the second half from a massive drought.
Deputy Agriculture Minister Amnuay Patise said the committee would arrange a report on the progress of investment budget disbursement for Prime Minister Prayut Chan-o-cha every two weeks.
Kulit Sombatsiri, director-general of the State Enterprise Policy Office, said state enterprise budget disbursement remained slow, with only 106 billion baht or 30.3% of the 350-billion-baht budget disbursed as of last month.
Some 35 state enterprises use the fiscal year, having drawn down only 43.9 billion baht or 30.9% of their budget worth 142 billion, he said. Another 11 use the calendar year and have taken out 63 billion baht or 30.3% of their 208-billion-baht budget.