Government Preparing A Budget Of 1.835 Trillion Baht

[sriracha john]

Samak says government committed to solve country's problems by preparing Bt1,835 billion

Prime Minister Samak Sundaravej Friday told the House that his government is committed to tackle the country with long and short-term measures by preparing a budget of Bt1,835 billion.

The budget will be Bt249.5 billion higher than projected income of the government.

He told the House during the first reading of the budget bill that the money would be spent to develop the country in eight strategies, including strategies to develop the society, quality of life, security, good governance technology and for restoring public confidence.

- The Nation / 27-06-08

[cclub75]

The budget will be Bt249.5 billion higher than projected income of the government.

Nation works really hard to avoid to use the word... "deficit" !

What a bunch of bozos.

[sriracha john]

Thailand proposes bigger budget deficit to spur growth

BANGKOK - Thailand plans to increase fiscal spending in the 2008/2009 budget by 10.5 percent to support economic growth, the newly elected government said in a budget address on Friday.

Introducing the budget bill for the fiscal year starting Oct. 1, Prime Minister Samak Sundaravej said the planned 1.84 trillion baht state spending would help the economy expand around 5.0 percent in calendar 2008 and 5.5 percent in 2009.

"The economy is expected to sustain growth in the rest of this year despite the impact of high oil prices and rising inflation," he said in a budget speech to parliament.

The 2008/2009 bill shows a projected budget deficit of 249.5 billion baht, or 2.4 percent of nominal 2009 gross domestic product, much bigger than a 165 billion baht deficit planned for the current year, or 1.75 percent of 2008 GDP.

- Reuters

[BSJ]

If they continue to have a deficit year in and year out that can't be funded by a growth in GDP the accumulated deficit will come back to haunt them! But I guess it doesn't matter, someone else will be in power then!

[kurgen]

A Budget Of 1.835 Trillion Baht,

more tea than you can drink

[steveromagnino]

If they continue to have a deficit year in and year out that can't be funded by a growth in GDP the accumulated deficit will come back to haunt them! But I guess it doesn't matter, someone else will be in power then!

nah it's fine. All you do is put the country into a crash but hedge all your currency/debt. Let the opposition get the country into order....use your own cash to buy an election victory. Change the laws to restrict your competitors in business. Buy up all the prime distressed assets without any political interference by bribing the rural poor with giveaways and a few cows. Change the laws to favour your own business empire. Sell off business empire eventually for vast profit then wait around a few years, and repeat as many times as is necessary to pay for your children's drug habits.

USA has proven incidentally that deficits are fine....aren't they??!

[cloudhopper]

Won't this policy inrease the rate of inflation and devalue the Baht?

[sriracha john]

You're not alone, cloudhopper...

Democrats criticise government's budget plans

The Democrat Party has raised concerns about the government's 1.83-trillion-baht budget for the next fiscal year. The opposition argues that the budget has been compiled with too much optimism. The Democrats also expressed concern that the proposed budget would force the public to inherit huge debts. Opposition leader Abhisit said in the 2009 fiscal budget debate in parliament yesterday that PM Samak painted a rosy picture of the country's economic outlook. The PM told the House that the budget was based on predicted economic growth of 5.5% next year and a 3.5% average inflation rate. *don't think so, Samak* But Mr Abhisit said the figures were too optimistic, as analysts from several financial institutes predicted that inflation next year would exceed 7%, while the commerce minister announced inflation had hit 7.6% last month. "I don't know what the government is basing this 3.5% inflation figure on," said Mr Abhisit. Mr Abhisit challenged Finance Minister Surapong to clarify the matter and give public assurances as to how the government intends to make inflation drop to 3.5% next year. Democrat MP for Bangkok Korn Chatikavanij said the government's estimates for GDP growth and inflation next year were wrong. The projected growth rate of 5.5% could be achieved only if prices of fuel, raw materials, and food dropped drastically.

Continued here:

http://www.bangkokpost.net/280608_News/28Jun2008_news09.php

Edited June 28, 2008 by sriracha john

[sriracha john]

Time to railroad this thing through like a bullet train... nevermind the consequences...

House Speaker believes budget bill debate to end before midnight

House Speaker Chai Chidchob expressed confidence that the budget bill debate on the second day will end and the bill will be passed in the first reading before midnight.

He said the House will set up a committee of 63 members to vet the bill after the current extraordinary session of Parliament ends at midnight.

- The Nation

[sriracha john]

BUDGET BILL DEBATE

Government gets the blame

The opposition says the government's is failing to manage the effects of soaring oil prices. Its ineffective handling of PTT is the reason motorists are suffering a natural-gas shortage too, it says.

PM Samak Sundaravej rejects these claims, made during the second day of the debate on the 2009 budget. The debate ends at midnight, and the bill is expected to pass with a large majority.

The government is seeking to appropriate 1.835 Trillion Baht for fiscal 2009, which starts in October. The deficit will be almost 250 Billion Baht.

Phuket Democrat Jurit Laksanawisit says the government is slow in responding to soaring oil prices. Its poor handling of state-controlled energy company PTT has seen an inadequate number of service stations selling LPG, he says.

Jurit asserts the government should have used PPT's 2007 windfall profits of 97 Billion Baht to lessen the burden of the high cost of energy on consumers. He says there's too little spending allocated for the promotion of alternative fuels.

Samak says PTT is a listed company and subject to the rules of the stock market. "I am not one to appease people. I care about the business of PTT," says Samak. He says the company is not to blame for too few stations selling LPG, resulting in a shortage.

Samak says it's the fault of motorists, and taxi-drivers in particular. They were slow in the past to modify their vehicles, and now petrol prices have escalated they have rushed to do so, resulting in a shortage of tanks and parts, he says.

Populist polices were on Jurit's radar, too. He attacked the government for using size as a funding measure in the small, medium and large village programme. He questioned farm-debt suspension, too.

The National Economic and Social Advisory Council has advised this government to end such policies, introduced by the Thaksin Shinawatra administration, Jurit says. They are of little benefit and only increase farm debt while making others rich, he adds.

- The Nation

[sriracha john]

What does the government want to do with a dubious program already under a corruption investigation??? Allocate even MORE money for it...

Opposition criticises government's 'ghost budget'

2009 spending plan 'lacking in detail'

The Democrat Party yesterday criticised the 2009 budget for its lack of clear details, saying that makes it difficult to keep irregularities in check. Party Deputy Leader Jurin Laksanavisit criticised the government for trying to collect 450 Billion Baht in corporate income tax despite the economic difficulties facing the country. He described the budget as a "ghost budget," as much of the spending plan lacked clear details. He said the budget for emergency purposes and the budget for solving the southern unrest, together worth Tens of Billions of Baht, had been allocated to several ministries, but no details of the budget spending were made available. "The government must spend the budget properly. Do not try to act like the Thaksin government, which poured development budgets only into areas where people voted for Thai Rak Thai," Mr Jurin said. He said the allocation of the 2009 budget for some projects was not transparent, such as the Eight Billion Baht project to drain water around Suvarnabhumi airport, which has been carried out since 2005. According to Mr Jurin, the Auditor-General has found that the project was overpriced and the NCCC is investigating the matter. He said the government has sought an additional budget of more than Two Billion Baht for the project, even though there are no details as to what the money will be spent on.

Continued here:

http://www.bangkokpost.net/290608_News/29Jun2008_news10.php

[Prakanong]

If they continue to have a deficit year in and year out that can't be funded by a growth in GDP the accumulated deficit will come back to haunt them! But I guess it doesn't matter, someone else will be in power then!

did somebody ever tell Bush that - American spending funded by the Chinese and one day it will haunt the septics

[nomoretalksin]

Regarding 08/09 budget planing

written by "Democrat's Shadow Finance Minister" Mr. Korn himself:

Quote

A window into where your tax money goes

By Korn Chatikavanij

Published on July 9, 2008

Just over a week ago, Parliament approved the 2009 budget, in principle. This included a deficit of Bt250 billion, or roughly 2.5 per cent of GDP.

That's the largest deficit ever, and it appears that deficits will remain a feature of our national budget for the foreseeable future. How will this affect our people and is this money being used for their best benefit?

After 35 working hours of the Ad Hoc Budget Committee, we have completed the budget request for the Ministry of Finance and moved onto the Ministry of Commerce. That means there are 18 ministries to go, 76 provinces and 59 state enterprises, and over a dozen other agencies. After two and a half months we will have seen and analysed every government department and assessed the capability of every head of department and permanent secretary. I'd like to think that they will derive some benefit from the feedback they receive from politicians, reflecting back the needs of their electorate.

Unfortunately, civil servants will have to bear a lot of 'grandstanding' by politicians in these meetings. There is a tendency for committee members to make speeches as opposed to simple requests for explanations or information. It is like Parliament transported into the committee room, with 63 members each feeling the need to make a speech to every government agency that comes to ask for funds. I think part of the reason is that the meetings are transmitted live into the press-room and sometimes the press is actually listening. Another reason is probably that this is the only way politicians know how to talk.

One is reminded about how eclectic the mix of politicians can be in terms of experience, background and knowledge. One common denominator - true across party lines - is the sensitivity regarding votes 'back home'. It is this combination of the civil service's technocratic approach and politicians' need to constantly be aware of voters' sentiments that makes the democratic system so intriguing. All this is clearly evident in budget sessions.

The Finance Ministry doesn't actually ask for a lot of money - most of the funding allocated to it is to pay off national debt and interest on debt. The ministry's task is to collect money rather than spend it, and indeed the Customs Department actually asked for less money than a year ago, even though it is aiming to collect 15 per cent more tax revenue than last year. The departments that had the toughest time were the Revenue Department, the Office for State Enterprises and the Public Debt Management Office. The Revenue Department had a rough time partly because, well, let's face it, who in the world likes revenue departments? Also, the Revenue Department was the most complicit during the Thaksin regime in allowing tax dodges to occur - and they are still being grilled about it.

The bulk of the government's tax revenue comes from the Revenue Department - in terms of corporate and personal income tax as well as VAT. So when the increased budget is based on the assumption that this department will be able to increase its tax intake, we have to ask how it is that this will be achieved, given that it is aiming for tax receipts to increase by more than twice the rate of GDP growth.

One important observation early in this process is that, in a sense, we attach too much importance to the budget as a tool to drive economic development. In Thailand this is particularly true as our tax base is narrow and the tax collected is only 15 per cent of GDP. Thus, government spending is a relatively small portion of the economy. Last week I mentioned that it is a concern that the 'investment' portion of the budget is in decline - only 22 per cent of total budget against 24 per cent last year- and in baht terms actually less net of inflation but this total is only 16 per cent of total national investments. The main component is private investment - domestic and foreign - as well as state enterprises. So, much more important are government policies that will ensure Thailand remains an attractive place to invest. Having said that, the trend is worrying since the 'expenses' portion of the budget is not only growing but is effectively fixed. This means that without the Bt250 billion deficit, we would only have Bt150 billion available for investments. Just to maintain this level of investment means we will have to live with budget deficits for a long time to come.

What is of more concern is that these 'investments' are not the kind of investments one hopes to see at all. I would define 'good' investments as money spent on improving or increasing productive capability. In short this means the creation of jobs and opportunities and also a financial/social return. So far, all I have seen in the budget are requests for land and additional government buildings as well as the procurement of computers and cars. We are building up assets that neither generate returns nor improve our competitive advantage.

It is also my supposition that there is a lot of wastage in the investments made by the State-Owned Enterprises (SoEs). We raised the point with the State Enterprise Office that the governance issue remains a concern. The recent farce at THAI illustrates a breakdown of good governance in even the leading SoEs. Bear in mind total SoE asset value of Bt6 trillion and one begins to understand the poor returns on assets for the Thai people. Too much cash is being left with the SoEs * and there is a lack of discipline in how they spend. The two state telephone companies are cases in point - and the point was made that investments in additional businesses by these agencies may even be in contravention of the Constitution, forbidding the state from competing with the private sector. It is high time that concession revenues flowed directly into state coffers to help reduce our tax burden and not to fatten the SoEs.

There were questions directed at the Public Debt Office of the Finance Ministry as to when we could look forward to debt clearance. I smiled, knowing full well that the day will never come. Indeed, I was happy to learn that we can build up our national debt to finance the planned Bt1.7 trillion mega-projects over the next five years without even increasing our debt-to-GDP ratio.

The key, as always, is making sure we invest in projects that will most benefit the public and in making sure the people are getting what they pay for. So far, I see too much waste and too much unproductive spending of our tax money.

korn chatikavanij is the shadow finance minister. He can be contacted via e-mail at: [email protected].

http://www.nationmultimedia.com/2008/07/09...on_30077648.php

UNQUOTE

* And who is sitting there mostly in the top seats?? We know who...

Honest and wise update by Mr. Korn himself

(blue hightlights by NMT)

------ and ---------

to watch Mr. Korn online!

highly recommended for any political observer: Mr. Korn himself in an nearly 1 hour interview with TOC:

Interview Link:

Part 1: http://www.thailandoutlook.tv/toc/ViewVide...?DataID=1008149

Part 2-up: go http://www.thailandoutlook.tv/ (and click on the bottom right of the page)

(thanks TOC)

[h90]

The budget will be Bt249.5 billion higher than projected income of the government.

Nation works really hard to avoid to use the word... "deficit" !

What a bunch of bozos.

That "PROJECTED income" is the next trap........

As it might be fake as well.

[sriracha john]

That "PROJECTED income" is the next trap........

As it might be fake as well.

The projected income is more like a Malayan Tiger Death Pit...

In light of the current thread on TAT's downward forecast for tourist arrivals, that's precisely what the government in power was depending on to turn Thailand around and on into economic prosperity.... it was the Mother Lode to finance everything... now that's obviously not occuring... but easy to see it coming 8 months ago prior to the election.

But the crème de' le' crème of BS comes from the People Power Party...

PPP airs economic platform

Party-list candidate Mingkwan Saengsuwan unveiled a package of economic platforms yesterday mapped out by his People Power Party (PPP) and painted a glowing picture of an economy driven by populist policies.

The PPP's economic package has three key aspects - the original mix of populist polices as championed by the disbanded Thai Rak Thai Party, a special mix of enhanced populist policies, and a roadmap to boost the country's revenues.

In the special mix of enhanced policies, it will strive to achieve a four-fold increase in revenue from tourism, while aiming to cut costs of running populist schemes by fourfold.

In regard to the roadmap to boost revenues, it pins hopes on increasing tourist arrivals to finance mega projects instead of raising taxes.

Based on the capacity of Suvarnabhumi Airport, tourist arrivals should rise from 11 million per year to 45 million with a projected annual revenue of 1.5 Trillion Baht to fill government coffers.

If elected to lead the next government, the PPP will implement many projects to attract foreign visitors within one year.

In order to cut dependence on oil imports, the PPP plans for a 100 per cent conversion from petrol to biofuels such as gasohol.

- The Nation

===================================================

45 million tourists coming to Thailand??? yeah right.... ok.... sure... give me a break...

and a 100% conversion away from petrol??? yeah right.... ok.... sure... give me a break...

we can see with a total budget in this thread of 1.8 Trillion, their figures before were based on drawing 1.5 Trillion from just tourism alone.

Edited July 9, 2008 by sriracha john

[sriracha john]

2009 budget bill faces court challenge

The Senate yesterday passed the 1.8 Trillion Baht budget bill amid concern it might not be constitutional. Spending of the funds will begin from October, the first month of the 2009 fiscal year. Ministries allocated the highest budgets were: Education Ministry (332.30 Billion baht), Finance Ministry (202.38 Billion baht), Interior Ministry (195.27 Billion baht), Defence Ministry (170.16 Billion baht) and the Transport Ministry (70.69 Billion baht). Of the total budget of 1.835 Trillion Baht, 240.94 Billion baht has been earmarked as the government's central budget. At the same time, about 30 Senators, including Sumol Sutawiriyawat, Rosana Tositrakul and Warin Thiamcharas, yesterday asked Senate Speaker Prasopsuk Boondej to seek a Constitution Court ruling on the constitutionality of the 2009 budget bill. It has been found that some Cabinet members, in their capacity as MPs, had increased the budget figures during the bill's second reading. Phetchaburi Senator Sumol Sutawiriyawat said the alterations contravened the constitution because the House had earlier cut the 1.835-Trillion-Baht budget by over 45 Billion Baht. The money was restored during a scrutiny panel meeting after a Cabinet resolution to return the sum. The constitution forbids MPs who are Cabinet members from proposing changes to the budget bill because they are seen as having a conflict of interest as budget spenders, Ms Sumol said. She pointed out the Chairman of the special committee vetting the 2009 budget bill was current Finance Minister Surapong Suebwonglee. She said Surapong was facing a corruption lawsuit related to the 2003 two- and three-digit lottery scam in the Supreme Court's Criminal Division for Holders of Political Positions. Senate Speaker Prasopsuk said yesterday the senators' request would be forwarded to the Constitution Court as soon as possible.

Continued here:

http://www.bangkokpost.com/200908_News/20Sep2008_news08.php

[sriracha john]

In related other "deficit" news...

Thailand suffers US$781 million trade deficit in August

BANGKOK, Sept 19 (TNA) - Thailand imported goods valued at US$16.7 billion while exports totalled US$15.9 billion in August, causing the country to suffer a deficit amounting to US$781 million, Permanent Secretary for Commerce Siripol Yodmuangcharoen said on Friday.

Major goods imported into the kingdom in August were oil having a total value of about US$3.95 billion, raw materials and semi-finished products worth US$7.5 billion and capital goods valued at US$3.4 billion.

"The trade deficit suffered in August resulted from high imports of oil and gold. Oil prices in the world market remained high while investors were interested in gold prices and traded gold in the forward market," Mr. Siripol said.

He said his ministry would closely monitor gold price movements.

During the first eight months of 2008, Thailand imported goods worth about US$122.9 billion, up 35.4 per cent from the corresponding period of last year. Exports between January and August this year totalled some US$ 120.057 billion, an increase of 24.5 per cent from the same period last year.

[thaihome]

Wasn't Aguust when oil spiked to $150 a barrel or something. Now that it is back down to $100 or so, the defict will probably go away.

Also, there are a number of major projects that are reaching the point that major equipment is arriving in Thailand. On our projects alone, we probably brought in close to 500 million in August. When these projects finish over the next few years, they are going to contribute in the hundreds of million dollars a year to the exported numbers.

TH

Edited September 20, 2008 by thaihome

[h90]

In related other "deficit" news...

Thailand suffers US$781 million trade deficit in August

BANGKOK, Sept 19 (TNA) - Thailand imported goods valued at US$16.7 billion while exports totalled US$15.9 billion in August, causing the country to suffer a deficit amounting to US$781 million, Permanent Secretary for Commerce Siripol Yodmuangcharoen said on Friday.

Major goods imported into the kingdom in August were oil having a total value of about US$3.95 billion, raw materials and semi-finished products worth US$7.5 billion and capital goods valued at US$3.4 billion.

"The trade deficit suffered in August resulted from high imports of oil and gold. Oil prices in the world market remained high while investors were interested in gold prices and traded gold in the forward market," Mr. Siripol said.

He said his ministry would closely monitor gold price movements.

During the first eight months of 2008, Thailand imported goods worth about US$122.9 billion, up 35.4 per cent from the corresponding period of last year. Exports between January and August this year totalled some US$ 120.057 billion, an increase of 24.5 per cent from the same period last year.

you see that wrong! That money comes as "commission" back on some bank accounts of the PPP criminals. If you add 30 % on all imports for megaprojects you have in the accounting a trade deficit, but in real the money comes back and get partially distributed at the next election.

So everything OK

[sriracha john]

PM urged to put budget bill on hold

Senator Ruangkrai Leekijwattana yesterday sent a letter to PM Somchai demanding the 1.8-Trillion-Baht budget bill be suspended pending a Constitution Court ruling on its constitutionality. Ruangkrai said the 2009 budget bill should not be enacted due to doubts over the constitutionality of its scrutiny process in the House of Representatives. His letter followed a move by some 30 Senators who last week urged Senate Speaker Prasopsuk Boondej to seek a Constitution Court ruling on the constitutionality of the budget bill. The bill, which was approved by the Senate last Friday, is expected to take effect in October. The Senators suspected that budget figures had been raised by some Cabinet members, in their capacity as MPs, during the second reading of the bill. This was deemed to be in breach of the charter which prohibits Cabinet members from proposing changes to the bill to avoid any conflicts of interest since they are spenders of the budget. Ruangkrai also said the Senate's consideration of the bill on Sept 19 was suspected to be invalid.

Continued here:

http://www.bangkokpost.net/230908_News/23Sep2008_news08.php

[geriatrickid]

Senator Ruangkrai Leekijwattana's protest makes no sense. It was approved by the senate and now he's objecting on "constitutional" grounds over an MP's right to try and influence the budget? That is part of the political and budgeting process all over the world. They should have voiced their objections in the senate.

Maybe the budget is indeed bad. I don't like deficits and am a firm believer that a government owes it to the people to pay off existing debt. However, that doesn't make this unconstitutional. The MPs did what they were elected to do. If he disagrees with the budget then he should do what other politicians do; vote against it, propose an alternative or amendments.

Sounds to me like he didn't get his porkbarrel share of perks.

[sriracha john]

I gather what happened was that after the bill was approved by the Senate, it then was taken out back afterwards and multiple changes were made by Cabinet Ministers (who were also MP's) and THAT is what the Senator considers the constitution says is illegal.

[WinnieTheKhwai]

Guys... lots of countries run somewhat of a deficit.. It's business as usual.

Did any of you folks check out recent economic initiatives in the USA, for example?

Now there's a deficit! Keep it real, people.

[slimdog]

Senator Ruangkrai Leekijwattana's protest makes no sense. It was approved by the senate and now he's objecting on "constitutional" grounds over an MP's right to try and influence the budget? That is part of the political and budgeting process all over the world. They should have voiced their objections in the senate.

Maybe the budget is indeed bad. I don't like deficits and am a firm believer that a government owes it to the people to pay off existing debt. However, that doesn't make this unconstitutional. The MPs did what they were elected to do. If he disagrees with the budget then he should do what other politicians do; vote against it, propose an alternative or amendments.

Sounds to me like he didn't get his porkbarrel share of perks.

My understanding is that it is a little bit more complicated than that, but still makes little sense..

Once the annual appropriations bill (Budget), has been passed in it's first reading, ammendments can only be made by parliament, either from proposals from the Ad Hoc Budget Committee, or directly from MP's. From what I understand, no new items may be included, but certain items can have their amounts ammended:

(1) money for payment of the principal of a loan;

(2) interest on a loan;

(3) money payable in accordance with the law.

Now my understanding is that the Finance Minister in his capacity as an MP ammended certain figures in relationship to item (2), as certain interest rates changed as a result of the global markets. However because he would (or his department would) benefit from the changes it's illegal, as Article 164 states:

In the review by the House of Representatives or a committee, any proposal,

submission of a motion, or commission of an act that results in the direct or indirect

involvement of members of the House of Representatives, senators, or members of a

committee in the use of the appropriations shall not be permitted.

So the Finance Minister is obliged by law to make provisions for debt repayment and interest, but once the Provision has been made (Budget proposal), he can't change it. Anyone else can, but not the person who actually understands why such an ammendment is needed.

[sriracha john]

Throw another 100 Billion Baht onto the deficit bonfire....

Government plans to hike deficit by 100 Billion Baht

The government has decided to increase the 2009 budget deficit by 100 Billion Baht to spur the economy and guard against mass layoffs in light of global economic recession. Deputy PM Olarn Chaipravat, in charge of economic affairs, said it is the duty of government to try to maintain economic growth and the additional deficit is one such measure. The deficit money will be injected into sectors that can help the poor and create more jobs, including the village fund and small- and medium-sized lending (SML) programme. The additional deficit would raise Thailand's 2009 budget deficit to 349.5 Billion Baht, or 3.5% of GDP, from 2.4% previously. PM Somchai said the government will speed up three major projects to lift the grassroots economy. He said at a workshop which discussed ways to help the rural poor that his government would press ahead with three projects - the Village Fund, One Tambon One Product (Otop) and SML programme. The projects were first launched by the government of Thaksin Shinawatra.

Continued here:

http://bangkokpost.com/301008_News/30Oct2008_news01.php

[sriracha john]

Additional information on where the additional 100 Billion Baht added to the deficit is going...

Government cash lift for tourism and health

The tourism and public health sectors are expected to get a shot in the arm as the government is set to allocate a portion of the recently-approved 100 Billion Baht additional budget deficit for 2009 to fund the two sectors. "The tourism sector plays a significant role in boosting the economy, while public health facilities and services need upgrading to lift the health and living standards of the Thai people," Deputy PM Olarn Chaipravat said yesterday. The Cabinet on Tuesday approved an increase in the 2009 budget deficit by 100 Billion Baht to spur the economy and guard against mass layoffs amid a looming global economic recession. The additional amount would raise the country's 2009 budget deficit to 349.5 Billion Baht, or 3.4% of gross domestic product (GDP), from 2.4% previously. Use of the funds, which are in addition to the government's 1.84-trillion-baht budget for the fiscal year starting Oct 1, must first be approved by parliament. According to Olarn, the additional 100-Billion-Baht budget deficit would go mainly to fund 12 investment projects covering plans to upgrade rural highways, to village funds and the small, medium and large (SML) community lending programme, water resource development, and

Continued here:

http://www.bangkokpost.com/081108_News/08Nov2008_news03.php