According to a Finance Ministry source who requested anonymity, caretaker finance minister Ekniti Nitithanprapas set a policy to accelerate government investment to stimulate the economy, reports the Bangkok Post.
However, if government agencies with allocated investment budgets are unable to sign contracts within the time frame set by the Budget Bureau, which is the end of March, the government will transfer the uncommitted funds to the central budget under the authority of the prime minister.
The Budget Bureau would then draft a Budget Transfer Act for the government to submit to parliament for approval.
For fiscal 2026, total investment expenditure amounts to B861 billion. As of Mar 24, 58% (about B508bn) has already been contractually committed, leaving 41% (B353bn) uncommitted.
Of this B353bn, repayments to the treasury for funds the government borrowed the previous year must be deducted, amounting to about B70bn, as well as some investment budgets already committed across fiscal years.
The Budget Bureau previously issued a circular to government agencies with investment budgets requiring that for single-year capital expenditures, particularly for equipment, agencies must expedite the incurrence of obligations and complete disbursements within the first quarter of the fiscal year.
For procurement-related expenditures, commitments must also be completed within the first quarter. For new multi-year commitments, contracts must be finalised within the second quarter.
Based on preliminary monitoring data as of Mar 13 (excluding the central budget), some agencies’ investment expenditures, particularly single-year items and new multi-year commitments, may not meet the required targets under these measures. Agencies are requested to report this to the bureau.
Mr Ekniti said the government has prepared measures to assist the public amid rising energy prices, in coordination with relevant agencies.
The measures cover five groups: vulnerable groups, supported through the state welfare card; the transport sector, overseen by the Transport Ministry; the fisheries and agricultural sectors, overseen by the Commerce Ministry; fertiliser-related matters, also overseen by the Commerce Ministry; and the industrial and service sectors, supported by the Finance Ministry through soft loan packages.
According to the source, one measure to support vulnerable groups is an additional cash subsidy for state welfare cardholders of B300 per month for a period of three months. This is on top of the existing benefit that allocates cardholders B300 monthly to purchase goods at Blue Flag (Thong Fah) shops.
The government allocates around B4.7bn per month to the state welfare card programme. Of this amount, around 90% is used for purchasing goods at Blue Flag shops.