B58bn for investment in fiscal year's H2

B58bn for investment in fiscal year's H2

A total of 58 billion baht for investment in infrastructure megaprojects is expected to be drawn down in the second half of fiscal 2016, says the Public Debt Management Office (PDMO).

Borrowing, the government's expenditure budget and state enterprises' contribution are the funding sources for the expected investment budget, deputy director-general Theeraj Athanavanich said.

He said several projects' contracts will be signed in the first half of fiscal 2016, with money gradually taken out in the latter half.

According to the government's infrastructure investment plan to beef up the country's competitiveness, 20 projects worth a combined 1.79 trillion baht will be launched from 2015-19.

Public investment is the main engine for helping the country to fend off potentially dismal exports and the uneven global economic recovery led by China.

The government last November put five infrastructure projects worth a combined 334 billion baht under the Public-Private Partnership fast-track scheme on the front burner, giving them a mandate to get off the ground in the second half of this calendar year.

They include three mass-transit routes in Bangkok worth a combined 194 billion baht and two interprovincial motorways worth 140 billion.

The three mass-transit routes are the Pink Line (Khae Rai-Min Buri), Yellow Line (Lat Phrao-Samrong) and Blue Line (Hua Lamphong-Bang Khae and Bang Sue-Tha Phra).

The two motorways will link Ayutthaya's Bang Pa-in district with Nakhon Ratchasima and Nonthaburi's Bang Yai district with Kanchanaburi.

Regarding progress of the 77-billion-baht fast-track investment in roads and water management, Mr Theeraj said 41 billion had been disbursed, and the entire budget was expected to be taken out this fiscal year.

The investment is part of the government's pump-priming to inject money into rural areas.

Farmers and other rural residents have been hit by sinking farm prices, drought, swelling household debt and economic malaise.

In the meantime, the PDMO has already borrowed 270 billion of the 390-billion-baht plan to offset the budget deficit for this fiscal year, Mr Theeraj said, adding that Treasury reserves totalled 330 billion at the moment.

Public debt amounted to 5.98 trillion baht or 44.5% of GDP as of last Nov 30.

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