Chaiyot said government spending had failed to measure up for two main reasons: postponement of investment in the Bt1.8-trillion mega-projects because of political uncertainty, and inability to form a new government because of the controversial April 2 election.

With a new poll likely to be held within 60 days, it would take at least three months before a new government could be formed to implement the mega-investment policies.

Chaiyot said 17 major state enterprises had reported to the Finance Ministry that their spending is below target.

At the end of March, their combined spending on new investment reached only Bt79.07 billion, or Bt34.39 billion less than expected. The 17 state enterprises are budgeted to make combined investments totalling Bt281.71 billion in the course of the current fiscal year. They had planned to spend Bt113.46 billion by the end of March.

The delay of mega-projects hit the investment plans of the State Railway of Thailand (SRT) and the Mass Rapid Transit Authority of Thailand (MRTA). The SRT planned to spend Bt7.41 billion by the end of March, but its actual expenditure was just Bt1.77 billion.

The MRTA planned to invest Bt2.83 billion, but actual spending was just Bt170 million.

Complicated e-auction processes also delayed spending by the Provincial Waterworks Authority and Provincial Electricity Authority, according to an official who asked not to be named.

Neither of the state enterprises could establish panels in time to supervise e-auctions, he said.

As the government requires every contract worth more than Bt2 million to be offered by e-auction, there were too many contracts, and this caused considerable delay.

To accelerate spending, the official said the ministry should propose that the government lift the minimum value of projects required to be offered by e-auction.

Wichit Chaitrong

The Nation