Posted on 01 Jun 2009
The government is expected to implement the second stimulus programme as scheduled on Oct 1 as it expects a positive verdict from the
The court will rule on Wednesday on the legality of an executive decree authorising borrowing worth 400 billion baht.
Deputy Prime Minister Korbsak Sabhavasu said that because it expected a positive ruling, the government did not need a backup stimulus plan.
Parliament is scheduled to consider the decree on June 15-16, so the government should be able to implement the project on schedule, even though earlier projections of a one-month delay were made when the Opposition submitted a petition to the court.
He said projects ready for immediate implementation included irrigation and transport improvements. The government plans to complete bids via an e-auction for the projects within 60 days of parliamentary approval.
Mr Korbsak said the projects were not huge but scattered nationwide, so they could create a multiplier effect in the short term as they involved the private sector and local people.
Under the second stimulus package, projects for immediate implementation are worth 1.06 trillion baht in the 2010 fiscal budget, covering water development, logistics, alternative energy, tourism infrastructure and education.
The priorities are water management, with a total investment of 222.5 billion baht, 17% of the total value, and transport at 335.9 billion baht (40%), including maintenance for highways, rural roads and mass transit projects.
Alternative energy is worth 156.6 billion baht, or 14% of the total. Education accounts for 128.6 billion baht, public health 98.2 billion baht, and the rest covers tourism, community development and building a creative economy.
The government plans to invest 1.43 trillion baht between 2010 and 2012, saying it create at least 1.6 million jobs.
Investment in 2010 is projected to account for 17% of gross domestic product.
In its latest forecast on May 25, the National Economic and Social Development Board projected 2009 GDP of 8.83 trillion baht, down from 9.01 trillion in its previous projection last November.
