Budget delay ‘will hit growth’

The finance minister expects the national budget in the new fiscal year that begins next month could be delayed — which would dent economic growth.

Growth in the economy this year would dip below 4.5%, according to Finance Minister Kittiratt Na-Ranong.

‘‘I have to admit that a delay would affect our development plans because we have investment projects for 2014 that are ready to begin once the new fiscal budget has been approved, the minister said.

‘‘If the budget can be disbursed on Tuesday, the projects can kick off immediately,’’ Mr Kittiratt said.

Previously, the Fiscal Policy Office (FPO) projected growth for this year at 4.5%. However, exports in the first seven months of the year fell short of the projection. The FPO forecast exports to grow between 4-5% from 2012, down from an earlier prediction of 7-7.5%.

In addition, it is expected that the FPO may cut its growth projection today.

Mr Kittiratt said keeping the rate of unemployment low is one of the key areas of economic management.

Critics of the delay say some of the government projects involve job creation and if the projects are held back employment could be affected.

The Constitution Court is considering a petition filed by a group of MPs and senators asking that it rules on the constitutionality of the 2014 Budget Bill.

The court’s deliberations could delay the disbursement of the national budget, which normally kicks off on Oct 1.

Mr Kittiratt said in case of late budget disbursement, the government could use leftover funds from the present fiscal year worth 120 billion baht.

According to the FPO, government investments — rather than exports — will be the key driver of economic growth next year, which also hinges on a global economic recovery.