Thailand’s huge infrastructure programme at stake
Investment in Thailand’s ambitious 2-trillion-baht ($60-billion) infrastructure projects is unlikely to start in the present fiscal year ending September 30, 2014, caretaker Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said according to the Bangkok Post.
The problem ist that even if the February 2, 2014 election would be held as scheduled and a new government could be formed, the time-consuming process of approving and setting aside a budget will delay the investment, he said. Moreover, the borrowing bill is pending in the Constitution Court after the Democrat Party asked for a ruling on its constitutionality.
The infrastructure investment, initiated by the Pheu Thai Party-led administration, was previously expected to start by fiscal year 2014 and be the main driver in revitalising the lacklustre economy. Given potential delays to the investment, 5 billion baht ($151 million) of public debt estimated for this fiscal year will be shaved off, Kittiratt said.
The new government may need to set aside an extra budget in fiscal 2014 or borrow from financial institutions to finance investment in priority projects if the borrowing bill is derailed.
Based on government expenditure of $76 billion set for fiscal 2014, a new government could seek up to $7.6 billion in borrowing.
Investment in Thailand's ambitious 2-trillion-baht ($60-billion) infrastructure projects is unlikely to start in the present fiscal year ending September 30, 2014, caretaker Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said according to the Bangkok Post. The problem ist that even if the February 2, 2014 election would be held as scheduled and a new government could be formed, the time-consuming process of approving and setting aside a budget will delay the investment, he said. Moreover, the borrowing bill is pending in the Constitution Court after the Democrat Party asked for a ruling on its constitutionality. The infrastructure investment, initiated...
Investment in Thailand’s ambitious 2-trillion-baht ($60-billion) infrastructure projects is unlikely to start in the present fiscal year ending September 30, 2014, caretaker Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said according to the Bangkok Post.
The problem ist that even if the February 2, 2014 election would be held as scheduled and a new government could be formed, the time-consuming process of approving and setting aside a budget will delay the investment, he said. Moreover, the borrowing bill is pending in the Constitution Court after the Democrat Party asked for a ruling on its constitutionality.
The infrastructure investment, initiated by the Pheu Thai Party-led administration, was previously expected to start by fiscal year 2014 and be the main driver in revitalising the lacklustre economy. Given potential delays to the investment, 5 billion baht ($151 million) of public debt estimated for this fiscal year will be shaved off, Kittiratt said.
The new government may need to set aside an extra budget in fiscal 2014 or borrow from financial institutions to finance investment in priority projects if the borrowing bill is derailed.
Based on government expenditure of $76 billion set for fiscal 2014, a new government could seek up to $7.6 billion in borrowing.
