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Thailand: Prayut defends B450bn deficit as budget passes first hurdle
Prime Minister Prayut Chan-o-cha on Thursday defended the proposed 450-billion-baht budget deficit for fiscal year 2018 while stressing the government’s spending plan is aimed at strengthening the country, not consolidating the regime’s power.
In his address to the National Legislative Assembly (NLA) Gen Prayut said the 2.9-trillion-baht budget is a tool to drive national development in line with the government’s strategy. It represents a drop in expenditure of 23 billion baht from this year’s budget.
“The spending plan has been drawn up carefully and in a transparent fashion. It is not being forced upon the public to consolidate the power of the National Council for Peace and Order [NCPO],” he said.
After eight hours of deliberation, the NLA voted 216 in favour of passing the budget bill with three abstentions. It must go through two more readings with the first of these to be undertaken by a 50-member committee.
Gen Prayut said the budget can be broken down into three parts: 2.15 trillion baht for fixed expenditure, 650 billion baht for investments and 86.942 billion baht for loan repayments.
The government has projected revenues of 2.45 trillion baht in fiscal year 2018 and says it will need to borrow 450 billion baht to cover the deficit.
Most of the money will be allocated in line with six strategies: 273.9 billion baht for security and national reconciliation; 476.5 billion baht for enhancing competitiveness; 575.7 billion baht for human development; 332.5 billion baht for solving inequality and poverty; 125.4 billion baht for water and natural resources management; and 784.2 billion baht for bureaucratic management to fight corruption and streamline the justice system.
As of May 26, the government’s coffers stand at 182.5 billion baht while foreign exchange reserves were at 184.4 billion baht as of April 30, the premier said.
Economic growth is expected to range between 3.3% and 4.3% next year compared to a bandwidth of 3.3% to 3.8% this year, he said. Last year saw growth of 3.2%, suggesting the economy is on a recovery track.
Gen Prayut discussed a range of issues including waste and water management and proposals for police reform during his NLA address.
He said over 30 shopping malls and firms have been asked to join a campaign to reduce plastic bag usage.
The premier was cautious when discussing proposals linked to police reform but vowed to take action against officials found guilty of buying their positions.
Source: http://www.bangkokpost.com/business/finance/1265107/prayut-defends-b450bn-deficit-as-budget-passes-first-hurdle