The government's 2-trillion-baht borrowing bill for infrastructure development is expected to get the nod from parliament this year, says Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong.
He said as the government has conducted a feasibility study and raised investors' confidence and transparency for the megaprojects, it is confident the hefty borrowing bill does not breach the constitution.
Mr Kittiratt was speaking Tuesday on the sidelines of a seminar entitled "Moving Forward: 2-Trillion-Baht Projects Driving Thailand to Match Global Standards".
As the global economy continues its tepid recovery, Thailand needs to begin investing in infrastructure to drive the economy forward, he said.
Thailand cannot rely solely on exports for economic growth, Mr Kittiratt said, adding that if infrastructure investment continues at a slow pace, the country will not achieve its growth target.
The Fiscal Policy Office on Monday said 2013 economic growth will likely come in near the bottom of its estimated range of 4-5%.
Earlier, the opposition Democrat Party said the borrowing bill could breach the constitution, stoking concerns that the government's infrastructure spending may not be able to start this year as planned.
Mr Kittiratt reiterated that the government will be able to maintain fiscal discipline in managing public debt not to skyrocket above 50-60% of gross domestic product (GDP) despite the massive borrowing.
He said he had already discussed with the Bank of Thailand a loan for infrastructure projects.
The process will not involve an all-amount loan at once but rather money will be issued on a step-by-step basis.
Increasing GDP growth, reducing logistics costs and enhancing regional connectivity will be significant advantages if the projects are successfully completed, said Mr Kittiratt.
Transport Minister Chadchat Sittipunt said the government is doing its best to ratify the process to gain parliamentary approval for the bill.
The infrastructure projects should be completed by 2020, which is the estimated deadline, he said.
Regarding the project's transparency, the government has created e-procurement for public scrutiny and invited the private sector to ensure transparency, Mr Chatchart said.
Central bank governor Prasarn Trairatvorakul said fiscal stimulus related to large-scale infrastructure investment could generate a positive crowding-in effect on private spending.
"I would expect the economy to return to its normal path in the third and fourth quarters of this year," he said.
The private and public sectors expect the investment could reduce the middle-income trap and inequality in society as better rail links could boost incomes, particularly upcountry.
Piyaman Tejapaibul, president of the Tourism Council of Thailand, said the railway improvement may help the growth of tourism-related sectors.