Officials worried slow budget disbursement may hamper pace of recovery
The Finance Ministry is concerned that budget disbursement for the first three months of the 2018 fiscal year, which commenced on Sunday, could end up 10 per cent below target.
This is because many state agencies and state enterprises do not fully understand the new procurement law and are therefore likely be more cautious about new capital expenditure, Somchai Sujjapongse, permanent secretary at the ministry, said on Monday.
He said he would discuss the issue with the Comptroller General’s Department with a view to speeding up budget disbursement.
“Some regulations may be changed in order to facilitate faster spending, and that would help us meet the spending target,” he added.
Public-sector spending is one of the nation’s key economic drivers, and a delay in expenditure can potentially adversely affect the pace of economic recovery.
The government plans to spend Bt2.9 trillion this fiscal year, which runs until September 30, 2018.
It still has to run a budget deficit of Bt450 billion in an effort to boost the economy and invest more in infrastructure projects.
