The government's large-scale plans for transport facilities are nearing parliamentary consideration, just as companies are calling on the government to implement an urgent overhaul of the education system.
Somchai Sujjapongse, the director-general of the Fiscal Policy Office, said the Finance Ministry might forward the 2-trillion-baht public investment outlay in transportation infrastructure at a cabinet meeting in early February.
The investment will include projects such as high-speed train routes, urban mass transit, dual-track trains, deep-sea ports and water transportation facilities that also link Thailand with neighbouring countries.
Mr Somchai acknowledged the borrowing bill was drafted as people are becoming concerned with increasing public debt, as the government's short-term populist schemes and the increasing need for social welfare in health care and pensions stretch the coffers.
The annual budget is unable to accommodate a large, multi-year investment budget due in part because it is not a fixed expenditure, as well as previous short-term investments already forcing the Finance Ministry to issue a separate borrowing bill to secure funding.
"This is not a blank cheque," clarified Mr Somchai.
"The bill will stipulate details such as project features, required budget amount and expected repayment terms. We might be attacked for pushing the bill, but resistance would subside if the government educates the people about the need for these projects."
Mr Somchai said the government would gradually raise funds over seven years, with the maximum borrowing reaching 400 billion baht in a given year. The government will call on private firms to finance the project and mobilise funds through an infrastructure fund, meaning the actual borrowed amount should fall short of 2 trillion.
The borrowing bill will include only transportation facilities, and other large projects such as energy will be sought in annual budgets.
Mr Somchai said the FPO also planned to overhaul tax codes, including the enactment of land and property taxes, and an environment tax.
Meanwhile, Thirapong Chansiri, president of Thai Union Frozen Products, said improvement of the country's human resources by beefing up on manufacturing technology to cope with the labour shortage was needed.
"I support the government's minimum wage hike as it will accelerate business restructuring. It also sends a signal to companies that they must invest in technology to increase efficiency," he said.