Thaksin assures govt not broke

Current trade deficit not seen as serious

BANGKOK: -- Prime Minister Thaksin Shinawatra says his government is not broke, has enough revenue to pay off expenditures and can move ahead with all planned mega-projects.

He said this is because it has opted for balanced budgets for this and next fiscal year and the country's trade and current account deficits are not serious.

His remarks followed some MPs' questions about whether the government now had money to run the country amid the current trade deficit.

Mr Thaksin said on yesterday's radio programme Prime Minister Thaksin Talks to the People that his government was not broke and still enjoyed a balance of revenues and expenditures, although it has come up with many belt-tightening measures.

Despite having a budget surplus, the government has opted for balanced budgets for both this and next fiscal year because many state agencies had not spent all their allocated budgets and had returned the remaining money to state coffers, the Thai Rak Thai leader added.

He said there was still no budget problem although Thailand now faced a trade deficit as a result of the sharp oil price hike from $25 (1,045 baht) to $50 (2,091 baht) per barrel.

However, the country's trade deficit and current account deficit should not surpass $4 billion (167 billion baht) and US$2.5 billion (104 billion baht) respectively this year because money inflow from abroad was still higher than outflow and the country's cash reserve was very high at US$48 billion (2,007 billion baht).

``The government will run all projects by spending whenever there are budgets, or we can wait until next year. We'll take all factors into account,'' said Mr Thaksin. ``News that there is no money left for the 30-baht medical care scheme is untrue because we had set ample budgets for this. So there is no need for the people to worry.''

He also promised to call meetings next week to help speed up the government's planned mega-projects, increase services under the 30-baht medical care programme, and push for more scholarships for needy students.

--Bangkok Post 2005-07-17

Can Taksin then explain why diesel fuel has gone up by more than 50% in the last three months, and why this was not staggered over a longer a longer period so that its impact would be less? If they need to reduce the fuel subsidy, and they are not in a mess, why was this not planned better?

The people are now saying that before he helped the poor have a better life. Now he is making them poor again. Everyone is suffering from the fuel hikes and it affects everything.

3 months ago diesel was 15Baht a litre. Now its 24Baht.

Can Taksin then explain why diesel fuel has gone up by more than 50% in the last three months, and why this was not staggered over a longer a longer period so that its impact would be less? If they need to reduce the fuel subsidy, and they are not in a mess, why was this not planned better?

The people are now saying that before he helped the poor have a better life. Now he is making them poor again. Everyone is suffering from the fuel hikes and it affects everything.

3 months ago diesel was 15Baht a litre. Now its 24Baht.

<{POST_SNAPBACK}>

What you on about?

Prime Minister Thaksin Shinawatra says his government is not broke, has enough revenue to pay off expenditures and can move ahead with all planned mega-projects.

--Bangkok Post 2005-07-17

<{POST_SNAPBACK}>

That's alright then. Phew, what a relief.

"He said there was still no budget problem although Thailand now faced a trade deficit as a result of the sharp oil price hike from $25 (1,045 baht) to $50 (2,091 baht) per barrel."

When was it last $25 a barrel? My research shows mid 2003. Not exactly recent? Rise in fuel prices in Thailand is due to government cutting the fuel subsidy because [The] "government is not broke"

If the government was "not broke", why didn't they stagger the cut in subsidy over a longer period of time, to soften the blow to the economy?

http://futures.tradingcharts.com/chart/CO/M

http://futures.tradingcharts.com/chart/BC/M

Can also use the Historical Chart java tool at www.nymex.com

Does the PM plan to export his way out of the deficit? What is his long term plan?

Anybody know?

Does the PM plan to extort his way out of the deficit? What is his long term plan?

Anybody know?