Prime Minister Prayut Chan-o-cha said he has prioritised financing the post-pandemic economic revival through state projects that include more than 500 billion baht worth of investments by state enterprises, as he mapped out a plan for this year's budget.
The premier made the remark at a meeting he chaired of state agencies where he laid out guidelines for how the budget will be allocated after the cabinet on Tuesday approved a budget of 3.35 trillion baht (US$100 billion) for the 2024 fiscal year which will kick off on Oct 1.
Government agencies are busy preparing their individual budgets to be submitted for vetting and approval by the Budget Bureau by Jan 27.
Gen Prayut told the meeting on Thursday that government spending is crucial for economic recovery.
They include the implementation of state-sector projects that include 505 billion baht worth of investments being undertaken by state enterprises, he added.
Such state spending will give the economy the push it needs to hit its target of 3.5% growth this year and next, as it continues to recover from the impact of the Covid-19 pandemic, he said.
This push should sustain the pace of recovery and bolster the country's competitiveness through government support for digital infrastructure investment, and labour skill-upgrading schemes.
The government was also backing tourism rehabilitation, the bio-, circular, and green (BCG) economic model, and the allocation of welfare to the needy, the premier said.
Such schemes, coupled with state enterprise investments and a strong rebound in the tourism industry, will sustain economic growth from 3.2% last year to 3.5% this year and 3.8% in 2024, he said.
Also, top priority will be given to funds designated to assist vulnerable groups in society.
At the same time, disbursements will be governed strictly by fiscal discipline to prevent long-term budget overruns, Gen Prayut said.
The government has stressed the importance of managing the budget deficit and keeping this at no more than 3% of GDP from the current fiscal year.
The goal is to work toward achieving a balanced budget as much as possible, the premier said.
Gen Prayut has instructed state agencies to comply with the government's budget-spending strategies in key areas: security, agriculture, industries and the service sector, tourism, smart cities, small-and medium-sized enterprise infrastructure, special economic zones, human resources development, social equality, environmental preservation, and government service upgrades.
The budget for fiscal 2024 will also serve projects based on the sufficiency economy initiated by His Majesty King Bhumibol Adulyadej The Great and related schemes launched under the initiatives of His Majesty the King and other royal family members.
Gen Prayut said the budget will be used to promote power decentralisation and enhance local administrative organisations' ability to serve the needs of residents and collect more revenue.
He said the budget spending forms a fundamental part of realising the long-term national strategy. In the next fiscal year, there will be 1,026 ongoing and new projects under the strategy.
