State agency investment soars 20.5%
State enterprise investment soared by 20.5% year-on-year during the three months to June, playing a role in spurring the economy, says the head of the State Enterprise Policy Office (Sepo).
Investment for the first seven months of 2017 grew at 30% year-on-year thanks to accelerated investment in existing and new projects, including the Mass Rapid Transit Authority of Thailand (MRTA) Green Line electric rail project spanning Mo Chit-Saphan Mai-Ku Kot, said Ekniti Nitithanprapas, director-general of Sepo.
Amid tepid private investment and domestic consumption, state investment and spending have served as crucial engines driving economic growth.
The National Economic and Social Development Board said recently that GDP rose 3.7% year-on-year in the AprilJune period after expanding 3.3% in the first quarter. The rise marked a 17-quarter high since 5.2% growth in the first quarter of 2013. In the first half, the economy grew 3.5% year-on-year.
Some 45 state enterprises took out 170.8 billion baht from the investment budget, representing 81% of the annual budget, during the 10 months to July, said Chanvit Nakburee, deputy director of the Fiscal Policy Office.
Enterprises whose investment budget disbursement met or exceeded the target include the MRTA at 102%, the National Housing Authority at 100%, the Metropolitan Electricity Authority at 102%, the Metropolitan Waterworks Authority at 121%, Thailand Tobacco Monopoly at 104% and the Electricity Generating Authority of Thailand at 103%.
Bangkok Mass Transit Authority had the lowest disbursement rate among state enterprise peers at 24%. The State Railway of Thailand’s rate was 43%, PTT Plc’s was 83%, the Expressway Authority of Thailand’s was 88% and the Industrial Estate Authority of Thailand’s was 91%.
According to Sepo, 45 state enterprises have a combined investment budget of 346 billion baht for fiscal 2017.
Mr Ekniti said many state enterprises managed to disburse higher-than-targeted investment budget due to frontloaded investment.