Pump pump it up : government to pump in extra 100 billions THB

The government will increase the mid-year budget for fiscal 2009 by Bt100 billion, to help drive economic growth as it bids to minimise a potential surge in unemployment resulting from the world economic slowdown.

In addition, it will extend the tax incentives granted to the property sector by another year, from March 2009 to March 2010.

They agreed that more public spending was needed to shore up a sagging economy hit hard by the global financial crisis, in which currencies have also become highly volatile.

Previously, the government set expenditure at Bt1.835 trillion for fiscal 2009 starting October 1, 2008, against revenue projected at Bt1.585 trillion.

This implied a budget deficit equivalent to 2.5 per cent of gross domestic product (GDP).

Suchart said the budget deficit would increase to 3.5 per cent of GDP, or an additional Bt100 billion. (Nation)

Okay… they won’t go very far with 100 billions (the 12 swedish jet fighters were bought for 35 billions THB 😉 ).

Last february, Samak The Cook added already 110 billions (read here)…

Difficult to blame Thailand for such stupid policy (spread some free money here and there and praying Buddha for a “boost”)… all the countries are currently playing the same game, and with amounts far larger.

1 Response to “Pump pump it up : government to pump in extra 100 billions THB”

  1. 1 mark 31 October 2008 at 5:11 am

    Since most of this money is going to go towards helping the poor (village funds) I imagine that this is a move designed to prepare for a general election, not to revive the economy.

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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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