Inflation : another allowance of 500 THB for low ranking civil servants

The Cabinet on Tuesday approved an additional monthly allowance of Bt500 each for low ranking civil servants who earn less than Bt11,700 per month.

The additional payment is meant to help coping with rising prices for food and fuel, Prime Minister Samak Sundaravej said.

The yesterday’s pay adjustment will bring up the monthly allowances to a total of Bt1,500 per civil servant. (Nation)

More fuel for inflation… The government continues to digg its own grave (look at the previous hikes here). The BOT continues to stay iddle… It’s a recipe for disaster.

The inflation tsunami is on the move.

4 Responses to “Inflation : another allowance of 500 THB for low ranking civil servants”

  1. 1 Gloomy Observer 17 June 2008 at 9:13 am


    (i) no-one in this administration has read any economic textbooks published since the 1980s, or;
    (ii) they are too cynical/scared to care about the consequences, or;
    (iii) they are calculating/gambling that as oil demand-supply on a domestic basis is not the driving force behind global oil/food prices, that other countries will “crack” before Thailand and reduce their oil usage (and the oil price), allowing the price to fall – but good luck removing that “allowance” afterwards.

    If it is indeed option (iii) it is a dangerous strategy. Once the inflation genie is out of the bottle it’ll be hard to put back in…

  2. 2 thaicrisis 17 June 2008 at 9:28 am

    You forgot one possible reason…

    4-… they wait for… elections. Soon.


    Let’s not forget that it’s the plan, announced by PM Samak (before he retracted) : quick Charter revision, immediately followed by snap general elections.

    Et voila !

    The admnistrations (and other institutions like the BOT, so called “independant”) are under the control of the politicians and other lunatic “generals”. That’s the curse of Thailand.

    And, usually, higher gasoline prices do not help politicians who wish to get reelected. At all. 😉

    They need to entertain people, to let the “fiction” of a strong economy live a little bit longer. Until the elections.

    After, the story will be different.

    However, I think reason 3 is also valid. It’s what I call “the magical thought”.

    Tomorrow will be better, oil price will return to 25 USD per barrel. 😉

    Cruel is going to be the desillusion… And painful.

  3. 3 Gloomy Observer 17 June 2008 at 4:41 pm

    Well, yes, but presuming they intend to win those elections, then they will still face the same problems as they do now, no? Unless they think they are going to lose and want to leave a messy legacy for the Democrats (which I don’t see)…

  4. 4 thaicrisis 17 June 2008 at 7:44 pm

    Of course. But PPP-ex-TRT would have “full powers”, with a good majority in Parliament and a good constitution (like the one of 1997, that served very well Thaksin when he was PM)…

    Thaksin would be free to make his come back (in politics).

    As for the cynic idea to leave and let a mess to the Democrats… it’s very unlikely. It’s a very western idea. 😉

    And furthermore, do not forget that Democrats have ZERO chance to get elected (I mean just look at the results of general elections of last december).

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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