He insisted that the budget would be spent to assist the sectors which are affected by the crisis, to ensure actual spending. He also noted that the money would not be used to recapitalise state-owned financial institutions, which would resort to other sources of funds.
He neither confirmed if Thailand Tobacco Monopoly’s remittances would be used to recapitalise the institutions.
At the meeting of Council of Economic Ministers on Wednesday, ministers would also discuss details of the investment projects of state agencies and state enterprises, to promote investment. Currently, they have not yet disbursed about Bt600 billion of budget.
The Cabinet will discuss on how to allocate the expansionary budget, which will amount to Bt120 billion, Finance Minister Korn Chatikavanij said on Monday.
On tax measures, Korn said they would be targeted at particular sectors and details should be approved by the Cabinet within January. Another stimulus measure would require state-owned financial institutions to extend hundreds of billion of baht to small and medium-sized enterprises, of which annual combined turnover was about Bt300 billion. He also noted that large-sized corporations do not need assistance, but instead urged the government to restore the aggregate confidence. Once demand resumes, they would be encouraged to pour new investment.
