Finance Minister Uttama Savanayana has rushed to assure that Thailand will not suffer a government shutdown, even in the worst-case scenario that the 3.2-trillion-baht annual budget bill for fiscal 2020 faces a further hold-up.
Although the annual budget bill for this fiscal year has yet to be implemented, the government is still able to take out regular and carry-over budget, while only new investment budget is not allowed, Mr Uttama said.
"Personally, I don't believe that a government shutdown from the budget bill delay will happen," he said. "Related parties are discussing solutions to prevent state operations from being stalled. The prime minister is aware of the issue and has instructed us to seek a way out. I'm confident that we are still able to pay civil servants' salaries."
The validity of the 3.2-trillion-baht budget bill for fiscal 2020 is uncertain after 174 MPs requested a Constitutional Court ruling on the issue. A former Democrat Party MP alleged that two Bhumjaithai MPs cast votes in favour of the bill without being present in the House.
With the request, submission of the budget bill for royal endorsement will have to wait until the court rules on its validity. The budget is estimated to face another two-month delay.
To brace for a potential postponement, the government has requested the Budget Bureau prepare a contingency plan to alleviate the impact, while the University of the Thai Chamber of Commerce has warned that the economy could expand by less than 2.5% this year if the annual budget bill remains behind schedule.
The annual budget disbursement was supposed to begin on Oct 1, 2019. But the lengthy period of government formation and legislative process after the election delayed it.
Separately, Mr Uttama said the Finance Ministry has yet to consider the Tourism and Sports Ministry's proposal to offer a cash refund for spending on tourism, similar to that of the Taste-Shop-Spend scheme, with an eye towards stimulating tourism.
The recent launch of blockchain-based value-added tax (VAT) refund service for foreign tourists could bolster the tourism industry, he said.
The blockchain-based service shortens the VAT refund period to 1-3 days from about a month. The Finance Ministry hopes that the shorter process will encourage foreign shoppers to use the refunded cash to spend more.
Meanwhile, the Comptroller-General's Department said 106 state projects have participated in the integrity pact scheme since 2015, and 73 billion baht in public procurement cost has been saved.