Govt's Budget In 2006 Set At Bt1.36 Trillion

[george]

Govt's budget in 2006 set at Bt1.36 trillion

BANGKOK: -- The government has confirmed to set its balanced budget for the next fiscal year at Bt1.36 trillion.

Deputy Prime Minister and Finance Minister Somkid Jatusripitak confirmed the figure this morning after chairing a meeting of authorities concerned here, including Deputies Finance Minister Varathep Ratanakorn and Chaiyot Sasomsub, Minister Attached to the Prime Minister's Office Suranand Vejjajiva, as well as senior officials of the Ministry of Finance, the Bureau of the Budget, the Bank of Thailand (BOT) and the Office of tne National Economic and Social Development Board (NESDB).

"After a thorough review of the country's key economic figures, as well as its fiscal and financial status and estimated total tax revenues to be collected, we agreed to confirm the government's 2006 budget at Bt1.36 trillion and it will be another balanced budget", he disclosed.

"We considered the budget figure is appropriate although it was based on a conservative estimation that the Thai economy would grow only 5.5-6.5 percent next year", he noted.

Mr. Somkid said the authorities believed that negative factors affecting the Thai economy currently, including widespread drought, impacts of the last December tsunami and oil price hike, could only be short-lived, and that the government's revenues from tax collection could meet its target of Bt1.25 trillion in this 2005 fiscal year and Bt1.36 trillion in the 2006 fiscal year, which begins on 1 October, 2005.

"It's also forecast that the country's economy will revive from its sluggish condition in the second half of the next fiscal year due to improved prospects of its tourism and export sectors, as well as global oil prices", he disclosed.

"The country's inflation next year is estimated at the controllable rate of 3.5 percent", he added.

The Ministry of Finance will propose the 2006 budget framework to the cabinet for its further considerations on 3 May, according to Mr. Somkid

--TNA 2005-04-25