Thai minister urges no early elections

Korn Chatikavanij said dissolving the House now would affect Thailand's loan program, agricultural risk insurance system and other stimulus efforts, the Bangkok Post reported.

"This is not the right time ... for a House dissolution, because it could affect the government's 400 billion baht ($12.15 billion) loan act, the agricultural risk insurance system and other investment projects that are starting up this year," Korn said. "Under the regulations, the government's term in office ends next year anyway, so there's no need to dissolve the House of Representatives now as it would only damage the economy."

Korn said if the opposition Puea Thai Party won the most seats in an early election, it would not be able to form a government and the Democrat Party would then set up another coalition government.

Fiscal Policy Office Director General Satit Rungkasiri said Thailand's economic growth could contract by 0.2 percent to 1.8 percent this year if the political situation deteriorates.

He said Thailand's gross domestic product should expand 4.5 percent this year, up from 3.5 percent projected in December. Serious political conflict that results in disruption of services or violence, however, could cut that by 0.2 percent to 1.8 percent, he said.

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