ID :
51054
Tue, 03/17/2009 - 20:30
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https://oananews.org//node/51054
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Thailand plans second economic stimulus package
BANGKOK, March 17 (TNA) - Fuelled by anxieties over the US economic meltdown coupled with declines in foreign investment and exports, Thailand’s economic ministers Tuesday agreed to launch a second round of economic stimulus measures which they hope can jump-start the domestic economy, Prime Minister Abhisit Vejjajiva said on Tuesday.
Mr. Abhisit said after meeting with the economic ministers earlier in the day and that they had recommended implementation of a second set of economic stimulus measures to boost the Thai economy.
The new measures will be in effect for two to three years, funded by loans sought from overseas, while investment in basic infrastructure will be studied at the same time, he said.
Initial investment on small infrastructure projects including transportation, public health, school and hospital projects is estimated to cost Bt1.4 trillion, according to Mr. Abhisit, who reasoned that more investment is needed because of declines in foreign investment and exports.
Government revenue for the current fiscal year is expected to fall further by Bt150 billion, a deeper loss than the Bt100 billion earlier projected.
Fiscal Policy Office (FPO) Director-General Somchai Sajjapong earlier said government revenues during the first four months of Fiscal 2009 (Oct. 1, 2008 – Jan. 31, 2009) was only Bt363.73 billion, down some Bt70.47 billion from its earlier target.
Government revenue in February is expected to fall considerably below the target due to declines both in imports and the prices of consumer goods, the prime minister said earlier.
In January Mr. Abhisit's government announced a Bt116.7 billion (US$3.35 billion) stimulus package aimed at boosting the sagging economy hit by last year's airport blockade and by the global financial crisis.
The plan comprised a mix of cash handouts for low earners, tax cuts, expanded free education and subsidies for transport and utilities.
A deputy government spokesman said it is expected that plans by the government to borrow Bt70 billion from foreign financial institutions could be spent by the government during the third quarter this year.
Economic ministers on Tuesday also agreed to allocate budget to compensate victims of noise pollution at Suvarnabhumi Airport and to refurbish houses near the airport to receive less of an impact from the pollution. (TNA)
Mr. Abhisit said after meeting with the economic ministers earlier in the day and that they had recommended implementation of a second set of economic stimulus measures to boost the Thai economy.
The new measures will be in effect for two to three years, funded by loans sought from overseas, while investment in basic infrastructure will be studied at the same time, he said.
Initial investment on small infrastructure projects including transportation, public health, school and hospital projects is estimated to cost Bt1.4 trillion, according to Mr. Abhisit, who reasoned that more investment is needed because of declines in foreign investment and exports.
Government revenue for the current fiscal year is expected to fall further by Bt150 billion, a deeper loss than the Bt100 billion earlier projected.
Fiscal Policy Office (FPO) Director-General Somchai Sajjapong earlier said government revenues during the first four months of Fiscal 2009 (Oct. 1, 2008 – Jan. 31, 2009) was only Bt363.73 billion, down some Bt70.47 billion from its earlier target.
Government revenue in February is expected to fall considerably below the target due to declines both in imports and the prices of consumer goods, the prime minister said earlier.
In January Mr. Abhisit's government announced a Bt116.7 billion (US$3.35 billion) stimulus package aimed at boosting the sagging economy hit by last year's airport blockade and by the global financial crisis.
The plan comprised a mix of cash handouts for low earners, tax cuts, expanded free education and subsidies for transport and utilities.
A deputy government spokesman said it is expected that plans by the government to borrow Bt70 billion from foreign financial institutions could be spent by the government during the third quarter this year.
Economic ministers on Tuesday also agreed to allocate budget to compensate victims of noise pollution at Suvarnabhumi Airport and to refurbish houses near the airport to receive less of an impact from the pollution. (TNA)
