Thai NLA considers shifting unused state funds to emergency budget

[webfact]

NLA considers shifting unused state funds to emergency budget



BANGKOK, 26 May 2016 (NNT) – The National Legislative Assembly (NLA) has begun considering transferring unused funds in 2016 from government offices, agencies and state enterprises to a central emergency fund.

At its latest meeting, the NLA reviewed a proposal from the Cabinet dealing with the transfer of unused state funds. Deputy Prime Minister Wissanu Kreau-ngam explained the content of the proposal, saying that funds doled out to government offices, agencies and state enterprises for use during the 2016 fiscal year that were unutilized should be put into a central fund for emergency situations.

The proposal detailed that over 22 billion baht will be left over at the end of fiscal 2016 due to state projects not completing in their timeframe. It pointed out that emergency uses for the funds could include a needed 200 million baht for the Rice Department to pass out jasmine rice seeds to farmers in 23 remote provinces.

The NLA suggested the proposal be revised to have the fund also available to policy projects such as for the development of a digital society and for compensating those affected by stricter laws against illegal fishing practices.


-- NNT 2016-05-26

[jamesbrock]

The proposal detailed that over 22 billion baht will be left over at the end of fiscal 2016 due to state projects not completing in their timeframe.

So if a project isn't completed within some arbitrary timeframe, the funds for it are clawed back leaving the project to remain incomplete and anything already spent wasted?

Or is it just easier for the money to 'disappear' if it's all in the one location?

[Pib]

Since unused funds flow back into the general treasury at the end of the fiscal year which ends 30 Sep, which pretty makes them unusable for anything else during that fiscal year because the budget year ended sounds like the NLA would just like to pull back money "now" that will not be spent by fiscal year end so it can be redirected to unfunded requirements right now.

Basically telling govt offices to "spend it or lose it"...and it looks like you can not spend all of your budget by 30 Sep so we are pulling back X-amount now to fund other things.

[ChrisY1]

The proposal detailed that over 22 billion baht will be left over at the end of fiscal 2016 due to state projects not completing in their timeframe.

So if a project isn't completed within some arbitrary timeframe, the funds for it are clawed back leaving the project to remain incomplete and anything already spent wasted?

Or is it just easier for the money to 'disappear' if it's all in the one location?

I think the latter

[Brer Fox]

The great budget deficit cover up. Take the money from some other deserving cause to pay for the goosey gander misplacement of wasted funds elsewhere.

[Srikcir]

The Prayut regime created a 500 billion baht budget deficit in the first six months of the 2016 budget - and all the while the junta-appointed NLA knows of unspent 22 billion baht that had been distributed to government offices, agencies and state enterprises?

But NLA has no parliamentary right to such funds belonging now to the Executive branch, independent organizations and state enterprises until at best at the end of the fiscal year should the surplsu remain. Of course Prayut under Article 44 can decide what is right and legal.

Meanwhile, Prayut will likely continue to use off-budget funds borrowed by sale of treasury bonds to pay for new projects such as commodity price supports and infrastructure. It would be best to let the government et al consume such alleged surplus funds as originally budgeted. In the alternative the government can voluntarily use excess funds now to help pay down the existing debt, ie., buy back some of the issued treasury bonds and save cost of interest.