The Thai weekly cabinet meeting on Wednesday approved the country's second phase of the economic stimulus packages worth of 1.4 trillion baht (US$39.78 billion) to shore up the country's sluggish economy, Finance Minister Korn Chatikavanij said.

The budget will cover several investments in transportation, irrigation, education and public health projects from this year to 2012, the minister said.

It is estimated the investments will create jobs for two million people and the country's long-term competitive advantages will also be boosted, Korn said.

The investment projects will kick off after the House of Representatives approves a loan borrowing plan to finance this second phase packages.

Korn said the loan sources will be mainly from the domestic market amid the ample liquidity.

Although the budget allocation might result in the country's higher public debt, the government's financial status will remain strong, said Korn.

It is estimated the country's public debt will rise to 60 percent of the gross domestic product (GDP) in 2013 from the current 40 percent of the GDP, said Korn.

"The return of the investments, however, will be worthwhile," are port of the local media Bangkok Post quoted Korn as saying.

Korn estimated the country's public debt would start leveling off in 2014 and should stay at 47 percent of the GDP in 2018.

(Xinhua News Agency May 6, 2009)