Thai cabinet approves larger budget deficit for next fiscal year

[Mid]

Thai cabinet approves larger budget deficit for next fiscal year
20 Jan

Thailand's military government has approved a 56 per cent increase in the budget deficit planned for the next fiscal year as it is trying revive the economy after a coup in May ended months of political unrest.

In the fiscal year starting Oct 1, the budget deficit is projected at 390 billion baht (US$12 billion), up from the current year's 250 billion baht, government spokesman Yongyuth Mayalarp told reporters after a cabinet meeting.

Expenditure will increase 5.6 per cent to 2.72 trillion baht, he said.

Of total spending, 544 billion baht will be for investment, he added.

The junta took power in May to end months of political unrest and has said it needs to invest in infrastructure projects to support Southeast Asia's second-largest economy at a time of weak exports and subdued consumption.

businesstimes.com.sg

[Jackthelad]

Is a repeat of 1997 on the horizon.?

[Panama Hat]

So, not making a profit . . . oh dear, there are courts to deal with that kind of thing

[Texpat]

Seems I touched a nerve.

If Thailand can control its monetary policy (unlike Greece) it can smooth over fluctuations in its economy by contracting and expanding its money supply.

It can also spend more than it has budgeted for (deficit spending) in a single year to help control the economy from constricting -- which would add to its accumulated national debt.

If these tools are available to a government why shouldn't they be used? It's not like any government would fcuk over their own children's future by spending more than they bring in year on year ... to make their current lives better and limit the options of future generations.

[Mid]

PM delivering speech on 2016 budget policy
Nuppol Suvansombut

BANGKOK, 21 January 2015 (NNT)

[Jackthelad]

Lets hope the Americans not raise there interests rates in the future, as i believe thai private companies have been doing the same as before 1997, and CP will be in deep shit.

[troy]

Of total spending, 544 billion baht will be for investment, he added.

Isn't that an oxymoron? Don't they mean spending on infrastructure, which would make a little more sense.

Does this mean the catastrophic debt incurred by the Yingluck government wasn't quite so catastrophic?

[Guest]

Lets hope the Americans not raise there interests rates in the future, as i believe thai private companies have been doing the same as before 1997, and CP will be in deep shit.

Enlighten us with your 1997 references, Jacko....

[sabang]

Does this mean the catastrophic debt incurred by the Yingluck government wasn't quite so catastrophic?

Work it out. Under Yingluck, and prior to the political unrest, the Thai economy was growing at over 5% annually (the floods put a dent in that for one year).
Now, under the Generals, the 'catastrophic' rice pledging scheme has been scrapped- yet the annual gov't Deficit is predicted to blow out by a massive 56%.
And Thai economic growth has fallen below 1%, by far the worst in the region. I can see why the General looks like a worried man.