NLA to spend spectrum auction funds

NLA to spend spectrum auction funds

Lion's share will go to reform initiatives

The National Legislative Assembly (NLA) passed the additional budget expenditure bill totalling 56 billion baht yesterday, drawn mostly from money obtained from auctions for the 900-megahertz spectrum and 1800-megahertz spectrum licences.

The NLA approved the bill on a vote of 191 in favour, none against, with three abstentions in the third and final reading. 

Government spokesman Maj Gen Sansern Kaewkamnerd said the budget was sourced from revenue consisting of 40 billion baht generated by the 1800-MHz spectrum licence auction and another 16 billion baht from the 900-MHz spectrum licence auction.

The bill was drafted so the government could legally disburse the money from the auctions for specific purposes.

Deputy Prime Minister Somkid Jatusripitak said the government felt the revenues should be spent on the country's development and to drive reform projects.

After a discussion with the Budget Bureau, it was decided the revenues would finance the expansion of the high-speed internet network nationwide, increasing internet connections with other countries and boosting the digital economy, he said.

The additional budget is also earmarked for projects to advance the cause of national reforms in social, economic and security affairs as well as distributing wealth to the provinces and lifting the country's competitiveness.

Mr Somkid, who heads the government's economic team, also said part of the revenue will also be put into the national reserve, helping maintain financial discipline. Of the total additional budget, the reform projects will get the lion's share, at 32 billion baht, followed by a disbursement of 15 billion baht to the telecommunications infrastructure improvement programme. The rest will go to the national reserve.

Before the bill was given the green light, NLA members voiced caution about the merits of the projects to receive the financing.

Chalermchai Boonyaleepan said he was interested to know which among the social, economic and security components of the reform projects will get the most or least amount of money.

He added that making high-speed internet access available to some far-flung areas could pose a threat to people's way of life as it could promote the wrong social values and bring about undesirable consequences such as materialistic practices and overspending.

He said advancements in digital technology and fast internet penetration into homes has its downsides. The government should consider allocating money to deal with the negative effects of the projects as well.

Another NLA member, Worapol Sokatiyanurak, said measures must be put in place to assess how efficiently pro-reform programmes to be granted money are managed.

More importantly, state agencies should have a clear idea on how to implement the programmes with transparency. He noted the spending of certain state funds is not governed by strict rules while it is also difficult to monitor, which could compromise financial discipline.

Mr Worapol also warned some pro-reform programmes could end up becoming populist projects if there is a lack of spending details. This could open up loopholes for the state fund to be over-exploited and squandered.

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