BANGKOK (Reuters) - Thailand's military government plans to spend an extra 190 billion baht ($5.33 billion) this fiscal year on investment projects in the provinces, the budget bureau head said on Wednesday, as the junta tries to revive growth.
Southeast Asia's second-largest economy has yet to regain traction since an army coup in May 2014 ended months of political turmoil.
The junta has ramped up spending and stimulus measures, but activity has been weighed down by years of weak exports and sluggish domestic demand.
The new spending plan will mainly be financed by the sale of 160 billion baht of savings bonds, Budget Bureau Director-General Somsak Chotrattanasiri told reporters.
The plan will be submitted to parliament by January, he said.
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Thailand's budget deficit will increase to 580 billion baht from 390 billion baht for the fiscal year that began in October.
Last week, Finance Minister Apisak Tantivorawong said the government had room to borrow as much as 220 billion baht for investment projects in communities, but added it might not need that much.
He said spending on investment projects was expected to lift the country's 2017 economic growth above the finance ministry's target of 3.4 percent and also to attract private investment.
The finance ministry has forecast economic growth at 3.3 percent this year, up from 2.8 percent last year.
($1 = 35.66 baht)
(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Kim Coghill)
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