Committee on economic stimulus delays gathering because of incomplete assessment of projects
Stimulus Fund's Delayed Approval: New Criteria for Project Screening
The Economic Stimulus Project Policy Committee (ESPPC) has pushed back its meeting set for Wednesday due to the subcommittee's incomplete screening of proposed stimulus projects. The 157 billion baht stimulus budget is yet to be allocated, according to Deputy Prime Minister and Finance Minister Pichai Chunhavajira.
Halted Meeting for Proper Allocation
Speaking after the weekly Cabinet meeting, Pichai shed light on the postponement, explaining that the ESPPC meeting would be on hiatus until further notice. The reason for this pause is to allow the subcommittee ample time to finalize the allocation details, ensuring all projects meet the necessary criteria for funding.
Upholding Legality and Proper Spending
Emphasizing the importance of spending the fund lawfully, Pichai stressed that all proposed projects needed to be screened to meet the fund's criteria. He added, "We're in no hurry. This fund needs to be spent correctly. I've preliminarily checked the proposed projects and asked the relevant agencies to review any that raise concerns."
Requests Outweigh Available Funds
Deputy Finance Minister Julapun Amornvivat highlighted that while the stimulus fund stands at 157 billion baht, requests for funding from various projects have totalled over 400 billion baht. These proposed projects include road building, water resources development, and local administration projects.
Rearranging Criteria for Eligible Projects
Julapun further explained that the subcommittee responsible for screening the projects would redefine the criteria to ensure that only eligible projects are approved. For example, water resource projects will only be approved for areas affected by drought in the past. In addition, new road projects must demonstrate the ability to improve local businesses' competitiveness. Projects with a budget below 500,000 baht will be rejected, focusing on transparency in the e-bidding process.
Emphasizing Transparency and Fiscal Responsibility
Prime Minister Paetongtarn Shinawatra reaffirmed during the Cabinet meeting that spending from the 157 billion baht fund must be transparent. She also reminded coalition partners to refrain from violating the constitution by seeking allocations to support or initiate personal projects during the vetting of the fiscal 2026 budget bill.
Preparing for US Trade BarriersJulapun also disclosed that not all of the 157 billion baht may be allocated for investments. Some of the funds could be used to counteract the impact of US trade barriers on certain industries. The government anticipates that the effects of increased US import tariffs will be felt in the third quarter of 2025. Trade talks between the US and Thailand could resume soon, with the US potentially imposing at least a 10% import tariff on Thai products. Thailand, however, will strive to ensure that its exports do not face a disadvantage compared to its competitors.
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- Enrichment DataThe revised criteria for project selection under Thailand's 157 billion baht economic stimulus fund emphasize transparency and strategic alignment. The key criteria include:
- Eligibility Based on Impact: Water resource projects will only be approved for areas previously affected by drought. This ensures that resources are allocated to regions with the greatest need.
- Enhanced Competitiveness: New road projects must demonstrate the ability to enhance the competitiveness of local businesses. This criterion aims to support projects that can boost economic growth and improve the business environment.
- Budget Threshold: Projects with a budget below 500,000 baht will be rejected. This measure is intended to ensure transparency in the e-bidding process and prevent smaller projects from being mismanaged.
These criteria are designed to ensure that the stimulus fund is used effectively and transparently, supporting projects that can contribute to Thailand's economic resilience and competitiveness, especially in the face of looming U.S. tariffs.
Revised Criteria for Fund Allocation
In an effort to maximize the effectiveness of the 157 billion baht economic stimulus fund, the subcommittee responsible for screening projects has redefined the criteria to prioritize eligible projects. This revised strategy includes selecting water resource projects for drought-stricken regions, focusing on road projects that boost local businesses' competitiveness, and setting a budget threshold of 500,000 baht for projects to maintain transparency in the e-bidding process.
Evaluating Projects' Economic Contribution
In addition to the revised criteria, the focus is on investing in stimulus projects with significant positive impact on the business and finance sectors of the Thai economy. This approach ensures that the allocated funds contribute to economic growth and resilience, as well as supporting the government's efforts to manage potential threats from US trade barriers.
