"We will not review all of the mega-projects, but we will prioritise them. For example, we will proceed with three [of 10] lines of mass-transit routes in Bangkok first," said Suranant Vejjajiva, a PM's office minister in the caretaker government.

The infrastructure projects will be financed mainly by government funds, he said.

New investment over the next three years will largely be based on what the government does in the current fiscal year, such as investment in developing water resources and supplies, Suranant said.

Deputy Prime Minister and Commerce Minister Somkid Jatusripitak said the government wanted the Budget Bureau and National Economic and Social Development Board to formulate a three-year investment plan.

"We have to prioritise investment over the next three years," Somkid said, adding that government investment would underpin the economy.

He made the comments after meeting Suranant and senior officials at the Budget Bureau yesterday.

The government had said it would invest up to Bt1.8 trillion in mega-projects between last year and 2009. Its plan, which included investment in transport, water and electricity supplies, has been disrupted by the political deadlock.

Policy-makers yesterday discussed government spending for this and the next fiscal year. New expenditures for the next fiscal year, which starts in October, are unlikely to be implemented until next March.

This is because the next government will be able to send its budget to Parliament for approval until the end of December at best, as the next election is expected in October.

"We have about Bt270 billion to spend between October to December this year and Bt280 billion from January to March next year before a new budget for fiscal 2006 can be implemented," Somkid said.

He suggested the National Economic and Social Development Board should turn its

10th national development plan into a three-year investment plan.

Government investment should be consistent with economic and social development, Somkid said, adding that it should have three goals - bracing for rising oil prices, positioning the economy so that it could leap forward, and promoting a sufficiency economy.

The Budget Bureau and government agencies will also have to prioritise their spending in the current fiscal year in order to lessen the impact of the delayed implementing the next budget, he said.

The government should focus on investing in the future rather than boosting economic growth, he said, signalling that the government might run a fiscal deficit next year.

The government will achieve a fiscal balance this year in order to win back investor confidence after years of budget deficits, he said. Once the government has regained confidence in its fiscal discipline, the way it invests the funds it receives from taxation can be adjusted.

Wichit Chaitrong

 The Nation