The government is set to inject at least 100 billion baht via local administration organisations to spur the economy at the grassroots level next year, Deputy Prime Minister Somkid Jatusripitak said.
The move came after the government faced criticism for its failure to solve bread-and-butter problems of the general public even though macro-economic figures including exports and gross domestic product growth have improved.
Speaking at the 35th annual meeting of the nationwide chambers of commerce in Surat Thani Sunday, Mr Somkid, who is in charge of economic policy, admitted the local economy is still in a difficult situation even if economic growth is expected to reach 4% next year.
"The challenge is poverty coupled with income disparity. And normally when there are improvements in the poverty situation, it is observed at the upper level first before expanding to the grassroots level," he said.
He said that after a discussion with the Interior Ministry, he had agreed to propose that cabinet relax certain regulations so local administration organisations can have at least 100 billion baht of their accumulative funds to spend on various projects aimed at creating jobs, particularly in tourism and community developments.
"No more road building projects," he said, adding the provincial chambers of commerce can assist local administration organisations to create sound and productive projects.
"Before one jumps to the conclusion that the government doesn't care about the plight of poor people, which is untrue, critics have to find out what are the actual causes of the problems facing the poor and what could be the ideal solutions to these problems," said the deputy prime minister.
Mr Somkid urged the private sector to play a bigger role in helping the government improve the local economy.
"And I believe the 77 provincial chambers of commerce will succeed in their roles to help boost economic growth," he said.
Mr Somkid expressed confidence the gross domestic product (GDP) in the third quarter of the year will grow by no less than 4% because of government investment and better export growth.
The overall economy of the country has started to pick up, with growing confidence in the economy observed among foreign investors, he said.
He added that although Thailand's economic growth this year may not yet be on par with those of other nations, the economy is growing in a stable manner while other countries are now starting to experience a slowing down of economic growth.
Increasing investment from state enterprises, which accounts for more than half of the country's entire investment fund, will play a key role in driving up next year's GDP to more than 4%, he said.
What's more, the government's implementation of its investment in megaprojects and infrastructure development, including the Eastern Economic Corridor (EEC), is now attracting investors from several countries, including Japan.
Transport Minister Arkhom Termpittayapaisith, meanwhile, conceded the low figures in government investment this year have stemmed from delayed budget disbursement and a lack of new investment projects.
The last major investment project was the construction of Suvarnabhumi airport, he said.
As for next year, the Transport Ministry has set aside a 309.6-billion-baht budget to fund the projects.
Of this amount, 152.1 billion baht will go to land transport infrastructure, 96.2 billion baht to rail transport infrastructure, 7.3 billion baht to marine transport infrastructure and 53.5 billion baht to air transport infrastructure.
Moreover, the ministry plans to implement 103 projects under the EEC scheme from this year until 2021, at a total cost of 745.7 billion baht, he said.
Among the planned projects is one that aims to further develop U-Tapao international airport in Rayong to relieve congestion and maximise its capacity so it can accommodate up to 60 million passengers per year.
The current capacity at Suvarnabhumi airport is 45 million passengers.
Meanwhile, an opinion survey conducted among 380 members of the Thai Chamber of Commerce (TCC) on Nov 13-16 showed optimistic sentiments, said Kalin Sarasin, TCC chairman.
Despite their perception of stagnant growth in all economic sectors, the majority of the survey's respondents said they believe the Thai economy will significantly recover between the second and third quarters of next year, Mr Kalin said.
Wirote Jirattigalachote, chairman of the TCC's committee on economic development in the northern region, was less confident about next year's economic outlook.
However, he too is convinced the economy will begin to pick up between the second and third quarters of next year, with the credit going to expansion in the tourism sector.