Thai Govt Populist Policies Set To Roll

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GOVT'S SPENDING PROGRAMME

Populist policies set to roll

Govt spending programmes to go ahead despite debt, fiscal concerns

BANGKOK: -- The government looks set to roll out several spending programmes despite concern over growing public debt and the country's fiscal position.

Prime Minister Abhisit Vejjajiva yesterday said there was a chance that the minimum wage, now Bt150 per day, would be raised to Bt250.

He said this should be decided by next April, as Labour Minister Chalermchai Sri-on and Finance Minister Korn Chatikavanij were working on the size of an increase.

DEBT-RESTRUCTURING SCHEME

The prime minister yesterday joined a major event to promote the government's debt-restructuring scheme for individual debtors. Some 1.18 million people with combined debts of Bt122.67 billion are registered with the government.

Earlier, it was announced that the government might lower corporate taxes as a quid pro quo for companies raising minimum wages for the poor.

The government also recently approved an additional 5-per-cent pay rise for civil servants, effective next April 1. Yesterday, it approved a change in entry salaries for civil servants to attract more officials with special skills or those in fields where there are shortages.

SKILLS, EDUCATION AND SALARIES

Deputy government spokesman Supachai Jaisamut said the entry salaries would take into account those for similarly skilled work in the private sector and would be in line with each person's academic background and skills.

Those with a degree from an overseas university and with proficiency in a foreign language would earn a higher entry salary than those with a degree from a local university but without foreign-language proficiency. However, the entry salary gap between the two would not exceed 10 per cent.

The Cabinet yesterday also approved the Civil Service Commission's proposal to extend the retirement age of 60 for some needy civil servants by a maximum of 10 years. At present, about 20 officials will see their terms extended, including an engineer at the Lands Department who will stay on to complete a number of projects.

Meanwhile, Deputy Agriculture Minister Supachai Phosu said the ministry was prepared to borrow Bt8 billion to finance the third phase of its rubber-plantation promotion scheme, under which it aims to increase the area under cultivation to 800,000 rai (128,000 hectares).

In the third phase, qualifying farmers will be granted Bt11,000 per rai annually for seven years to plant rubber, against the previous proposal of Bt3,500 for just three years. The budget for the phase will rise accordingly, from the original Bt3.9 billion to Bt8 billion.

After the seven years, the government expects to reap dividends from the sector's increased contribution from exports.

The Cabinet yesterday also revised export contribution levels, which will be in the range of Bt1.20-Bt5 per kilogram, depending on rubber prices.

"Many are worried that this scheme will benefit politicians and their nominees. I insist that this will never be the case. Any politician, at any level, if involved with this, would be the worst [type of miscreant]," Supachai said.

LIFE-INSURANCE DEDUCTION

Also in the works is the Finance Ministry's plan to seek Cabinet approval for the doubling of the life-insurance deduction for tax purposes to Bt200,000 per year. While this would encourage long-term saving, the government would see lower tax income.

The Commerce Ministry will also seek the Cabinet's approval for six measures aimed at lowering the cost of living.

CONSUMER-GOODS PRICES

Among the measures, consumer-goods prices would either be maintained or increases would be delayed. Stringent measures would be in place to monitor prices.

The ministry also plans to reduce the soybean import tariff from 2 per cent to zero, as well as increasing the number of Blue Flag shops from 4,016 to 6,000.

It expects the cost of living to be cut by 20-40 per cent, or up to Bt800 million, this year as a result of the measures.

On the revenue side, it is reported that the Finance Ministry will soon propose an environment tax bill, under which industries would be charged in accordance with their level of pollution.

Those that cause water pollution would be charged Bt10,000 per tonne per year, and those polluting the air would face a tariff of Bt2,500 per tonne. Travellers could also be charged, either at the rate of 15 per cent of the fare or Bt1,000 per head.

As part of its revamp of the tax system, the ministry is also pushing the property tax bill, which will levy charges on landlords with considerable amounts of idle land.

-- The Nation 2010-08-17

[hammered]

The big build up for the next election is coming. The government parties need to show their "sponsors" they can win, or they may just find none of them can play anymore.

[Piengrudee]

Great. This mean i can continue to have my free bus ride to work everyday. This is the best government ever. Also lots of extra surprise holidays, including 1 full week in May this year.

[Thai at Heart]

Populist. One of the three most un-liked words in politics after "liberal", closely followed by "progressive".

[animatic]

Populist. One of the three most un-liked words in politics after "liberal", closely followed by "progressive".

And as equally a misnomer as "conservative" these days.

[Thai at Heart]

Populist. One of the three most un-liked words in politics after "liberal", closely followed by "progressive".

And as equally a misnomer as "conservative" these days.

If that ain't the truth.