Ministry eyes stimulus from fund dispersal

Ministry eyes stimulus from fund dispersal

The Finance Ministry wants to speed budget disbursements over the next three months to support economic growth and help to withstand sluggish global conditions.

Pongpanu Svetarundra, deputy finance permanent secretary, said the ministry plans to disburse 250 billion baht in funds for new public investment programmes through state agencies and state enterprises in the final quarter of fiscal 2013 ending Sept 30.

While the government has no special policy to boost fiscal spending, ensuring that already-budgeted programmes are carried out on schedule will help the overall economy at a time when global conditions remain weak, he said.

If state agencies and state enterprises disburse funds on schedule, it will provide a counter to slowing consumer spending and exports, Mr Pongpanu said.

For fiscal 2013, the government budgeted 450 billion baht for investment programmes, with a relatively low disbursement target of 80%.

Disbursements as of June 30 stood at 200 billion baht, and authorities expect to disburse at least an additional 130-150 billion in the coming months.

The Finance Ministry has asked the Comptroller-General's Department to set up a special team to help coordinate with state agencies in expediting spending programmes, which can often be slowed by government regulations and procurement procedures.

Two areas with anticipated delays are primary education spending and funds allocated to local administrations for community spending programmes.

The funding to support budget decentralisation policies alone amounts to 18 billion baht.

Spending programmes under the Highways and Irrigation departments are also expected to see delays.

The Finance Ministry has set next Wednesday as a cut-off date, after which agencies face a freeze in investment programmes that have yet to make progress in disbursement.

The Finance Ministry expects another 20 billion baht in funding related to water management and flood prevention projects to be disbursed within the next three months, part of a special 350-billion financing bill approved this year.

But the bulk of the funds, amounting to 325 billion baht set aside for various water management projects, may not be disbursed until next year following a court order that programmes must undergo public hearings and environmental impact assessments before construction can begin.

State enterprises, meanwhile, have disbursed investment funds of 100 billion baht for the fiscal year to date out of a total budget of about 300 billion.

Officials expect additional spending of 100 billion baht will be made in the next three months.

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