Budget deficit : the government adds 110 billions to boost the economy

The budget deficit for the current fiscal year (from october 1 to september 30) was set at 165 billions THB, by the Junta.

The new government wants to inject 110 billions more in order to boost the economy.

Deputy Prime Minister and Industry Minister Suwit Khunkitti on Monday revealed the government planned to spend Bt110 billion stimulating the economy at the grass-roots level through the village fund and the small-, medium-, and large-scale (SML) enterprise fund.

He said the government had paid serious attention to jump starting the country’s economy. It would set aside an additional Bt80 billion from the village fund and around Bt30 billion from the SML fund to stimulate the grass-roots economy. (TNA)

The Village fund was a very popular policy created by Thaksin (one-million-baht credits were given to 77 000 villages) . And it’s likely to be an efficient, and quick, way to pay back the voters upcountry…

Will it have a real effect ?

So 165 + 110 = the budget deficit would be 275 billions THB.

That’s 3,3 % of the total GDP (from Q3 2006 to Q3 2007, at 8 231 billions).