Stimulus projects seeking funding from the allocated budget of 157 billion baht are scheduled to go before the Economic Stimulus Committee on Wednesday.
According to Deputy Finance Minister Paopoom Rojanasakul, if the entire 157 billion baht cannot be approved by Sept 30 this year, the remainder will be forfeited and cannot be used at a later date.
However, he said it is not necessary to approve the full 157 billion baht, as the funds must be used efficiently.
Proposals must conform with the cabinet's framework, which includes: investment in various types of infrastructure; domestic tourism promotion projects; export support projects; and community economic support projects.
A source from the Finance Ministry who requested anonymity said earlier many proposals do not align with the stimulus programme's objectives, while others are redundant or too large to be implemented in the short term.
The Interior Ministry proposed a budget with 21,000 projects valued at 79.9 billion baht, while the Transport Ministry requested 80 billion for road repairs and construction, rail systems and water infrastructure.
The Commerce Ministry proposed a budget of 3 billion baht to stimulate the export sector and support entrepreneurs affected by US tariff measures.
The Tourism and Sports Ministry proposed 13 billion baht to continue the "Tiew Thai Khon La Khrueng" half-half co-payment scheme and other initiatives, while the Agriculture and Cooperatives Ministry proposed employment projects under the Royal Irrigation Department.
Mr Paopoom also commented on the economic impact of the Israel-Iran war, stating the government must continuously assess the economic situation due to multiple influencing factors.
Regarding the US tariff measures, the government needs to regularly evaluate their effects, as conditions are constantly changing, he said. Negotiations with the US on the tariffs have begun and there is a positive outlook, said Mr Paopoom.
He said at Tuesday's cabinet meeting, the semi-annual reports from the Bank of Thailand and Monetary Policy Committee were acknowledged.
After receiving the reports, Mr Paopoom said the cabinet made four recommendations: improve coordination between monetary and fiscal policies; manage inflation to keep it within the target range; review and ensure an appropriate exchange rate; and examine the credit system to increase liquidity and inject more funds into the economy.
