Sepo tempers disbursement outlook as target slips away

State enterprises’ investment budget disbursement rate will hit 89% if 100 billion baht is drawn down in the final two months this year, says Chanvit Nakburee, deputy director of the State Enterprise Policy Office (Sepo).

Last year’s disbursement of 81% will be surpassed but the target of 95% will not be met, Mr Chanvit said.

The State Railway of Thailand (SRT) double-track rail routes are the government’s main investment projects, he said.

Some 45 state enterprises doled out 339 billion baht worth of investment budget, 85% of the disbursement target for the first 10 months of the year, said Prapas KongIed, director-general of Sepo.

The investment budget was set at 445 billion baht for this year.

Eleven state enterprises whose accounting period is based on the calendar year doled out 236 billion baht from January to October, accounting for 94% of the disbursement plan.

A further 34 state enterprises whose accounting period is based on the fiscal year disbursed 103 billion baht for the 10 months to October, representing 71% of the disbursement plan.

The Mass Rapid Transit Authority of Thailand (MRTA) and the Port Authority of Thailand drew down 100% of their disbursement plan, the Metropolitan Waterworks Authority and the Electricity Generating Authority of Thailand drew down 98%, the Provincial Electricity Authority (PEA) 97%, the Metropolitan Electricity Authority (MEA) 96%, PTT Plc 95% and Thailand Tobacco Monopoly 93%.

Bangkok Mass Transit Authority took out a mere 5% of its disbursement plan.

State enterprises’ investment budget has been set at 392 billion baht for 2019, led by the SRT, PTT, PEA and MEA.

Deputy Prime Minister Somkid Jatusripitak urged state enterprises to disburse their investment budget during the remainder of this year to boost the country’s economic growth.

Thailand is expected to reap a windfall in terms of foreign direct investment from the US-Sino trade tension, Mr Somkid said.

Any state enterprises that have additional investment plans can propose them to the National Economic and Social Development Board, he said, while the Finance Ministry and the Transport Ministry will ramp up major investment projects.

The government has employed public and state enterprise investment as an instrument to drive the country’s economy over the past few years, and the hope remains that spending will help the country deliver at least 4% growth this year.