However, he told reporters he did not expect that figure to be reached this year, saying approval of the various projects would be gradual. The ratio stood at around 40 percent at the end of 2011 and is capped by law at 60 percent. Kittirat has previously said it could rise to 43.5 percent in the current fiscal year to end-September and that most of the funds would be raised locally. He said on Monday there was sufficient liquidity in the country's financial system to meet the funding needs. Thailand suffered devastating floods in the final months of 2011, causing the economy to shrink 10.7 percent in the fourth quarter from the third. That left gross domestic product growth in the full year at just 0.1 percent. Kittirat said the first 30 billion baht ($981 million) of the planned borrowing would be put to a cabinet meeting for approval on March 13. The cabinet approved a decree on Jan. 10 that authorised funding of 350 billion baht ($11 billion) for projects that involved rebuilding and flood prevention work. In addition, the government has agreed to support the establishment of a flood-related insurance fund and the Finance Ministry is to seek funding of 50 billion baht for that.