Uttama ready for all budget possibilities

Finance Minister Uttama Savanayana was quick to settle fears by saying the government has prepared plans to dole out the investment budget after the Constitutional Court’s decision to accept a petition asking for a ruling on the validity of the 2020 budget bill.

Regardless of the court’s ruling on the case, the government has prepared a contingency plan, but how long the budget bill will be put off is unknown, he said.

The law allows regular and obligation budgets to be doled out based on the previous year’s budget if the legislative process for the annual budget bill is incomplete before the fiscal year starts, said Mr Uttama.

The investment budget for fiscal 2020 is 600 billion baht. Half is already committed to contractors and the remainder is for new projects.

Fiscal Policy Office director-general Lavaron Sangsnit recently said 50 billion baht out of the 300-billion obligation budget was doled out from October to December of 2019.

The 3.2-trillion-baht annual budget for fiscal 2020 was supposed to start on Oct 1, 2019, but was hampered by the lengthy government installation and legislative process.

“We have prepared plans that cater to all scenarios. We’re waiting for the court verdict and will use the available resources effectively,” said Mr Lavaron.

House Speaker Chuan Leekpai has asked the court to rule on the validity of the 2020 budget after a coalition lawmaker was revealed to have voted on the bill without being present in the chamber.

Mr Uttama said the country’s strong macroeconomics enable the government to launch measures to stimulate economic growth.

“The economy managed to weather tough situations in the past. We already made it through the bird flu,” he said.

The coronavirus outbreak is taking a toll on the tourism sector and domestic economy.

The government approved an aid package in line with the IMF’s recommendation that stimulus efficiency dwindles in case there are delays in launching measures, said Mr Uttama.

The government set up a committee to drive both domestic and overseas investment, in particular for state enterprises.

Meanwhile, Mr Uttama presided over a signing ceremony between 18 financial institutions and the Thai Credit Guarantee Corporation under a loan guarantee scheme worth 180 billion baht for small and medium-sized enterprises (SMEs).

Some 10,000 SMEs have already applied for the credit guarantee.