Thai aims to rerun disrupted vote in April

Farmer protesters gather during a rally demanding the Yingluck administration resolve delays in payment, outside Government's temporary headquarters in Bangkok February 10, 2014. [Photo/Agencies]

GOVERNMENT PARALYSED

Much of normal government business has been paralysed since the protesters took over parts of Bangkok in November, and the drift has been compounded since Yingluck dissolved parliament in December and became head of a caretaker administration.

The authority of a caretaker government to initiate new spending and political programmes is limited, and there is confusion in Bangkok about the constitutional powers of different branches of government.

Highlighting the uncertainty, Election Commissioner Somchai had said earlier that there were doubts over the legality of restaging voting and the whole election might have to be voided and re-run.

The drift and deadlock has also started to affect spending plans, raising concerns that it could drag on the economy.

The World Bank highlighted worries about delays to much-needed infrastructure policies, although it still sees the economy growing 4 percent this year - a more optimistic reading than Thailand's central bank, which has slashed its growth forecast to 3 percent and warned it could be worse if the protests drag on.

Yingluck's Puea Thai Party is strong in the populous, rural regions of the north and northeast and helped win votes there in the 2011 general election with a subsidy programme that offered farmers a price way above the market for rice.

However, that programme has run into funding problems and hundreds of thousands of farmers have been waiting months for payment from the state. Some are now protesting in Bangkok, although separately from the political demonstrations.

Finance Minister Kittirat Na Ranong said the farmers would get paid but appealed for time to arrange bank financing.

"The government believes it could complete the rice loan in a few days' time," he told reporters ahead of a cabinet meeting. "We need to reassure financial institutions that the rice loan will not breach the law."

Under an interim administration the Election Commission is in charge of approving certain government spending from the central budget.

Thai election concludes, results yet to come	Thai political crisis threatens budget, rice scheme