Govt Likely To Delay Big Projects: Pheu Thai Source

[webfact]

Govt likely to delay big projects: Pheu Thai source

By Wichit Chaitrong

The Nation

The government is expected to delay planned major infrastructure investments because of its tight budget as priority is shifted to assisting farmers and other low-income groups, according to a source in the Pheu Thai Party.

The economic-policy package has been handed to Prime Minister Yingluck Shinawatra to prepare for presentation to Parliament on August 24.

Large projects are likely to be delayed, such as railroad and mass-transit construction, since the government needs to provide funds for villagers, the source said. Also, the government needs to ensure farmers receive a guaranteed price of Bt15,000 per tonne of rice.

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The current turmoil in global financial markets also presents greater challenges for the new government, so it will need to consider domestic demand.

Also, export income calculated in baht will be smaller because of the currency's strengthening against the US dollar, which would negatively affect the economy, he said.

Further, a cut in the corporate income-tax rate from 30 to 23 per cent would lead to lower revenues for the government.

In related developments, the economic team headed by Olarn Chaipravat has voiced surprise that he and other members were not appointed to the new Cabinet. "We laid down the economic policy and worked hard during the election campaign, but we have not been invited to join the Cabinet," a source said.

Also, Kittirat na Ranong, who was appointed deputy prime minister, as well as Thirachai Phuvanatnaranubala as finance minister, were not part of the economic team working during the election campaign.

However, the source noted, "Yingluck should be allowed to choose the people she wants to work with."

Critics previously expressed concern that the government's populist policies might quickly lead to increased public debt.

Meanwhile, Boonchai Charassaengsomboon, director of the macroeconomic policy bureau at the Fiscal Policy Office, said Thailand might be adversely affected by the threat of a global economic slowdown as the country is dependent on income from exports and tourism.

However, the situation is unlikely to be similar to the 2007-08 global financial crisis that caused the Thai economy to contract in 2009, he said.

-- The Nation 2011-08-13

[Buchholz]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

[DP25]

Further, a cut in the corporate income-tax rate from 30 to 23 per cent would lead to lower revenues for the government.

I'm guessing this one won't be delayed long

[Emptyset]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

I'm not sure voters will be particularly upset infrastructure projects have been put on ice for now in order to focus on things which will make an immediate difference to their lives. It's not like anyone voted for PT because they like the idea of the land reclamation project... they might also think it's a totally uncessary absurd idea (also an opportunity for massive corruption as are all of these projects) - I dare say most will be pleased this and other plans have been shelved!

[visions]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

The delayed projects were never part of PTP policies. They were the Dems way of paying back the puppet masters in kickbacks etc of high profile big face projects.

PTP is correct in delaying these projects in order to prioritise their own policies as laid out in their election manifesto. And delay" is the operative word....not cancelled. (all tho that may be the ultimate fate for some of the Dems ill conceived dreams.)

[Crushdepth]

Further, a cut in the corporate income-tax rate from 30 to 23 per cent would lead to lower revenues for the government.

Really? How possible?

[apetley]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

I'm not sure voters will be particularly upset infrastructure projects have been put on ice for now in order to focus on things which will make an immediate difference to their lives. It's not like anyone voted for PT because they like the idea of the land reclamation project... they might also think it's a totally uncessary absurd idea (also an opportunity for massive corruption as are all of these projects) - I dare say most will be pleased this and other plans have been shelved!

I think you'll find that the rice guarantee is one of the biggest scams going.

[Crushdepth]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

I'm not sure voters will be particularly upset infrastructure projects have been put on ice for now in order to focus on things which will make an immediate difference to their lives. It's not like anyone voted for PT because they like the idea of the land reclamation project... they might also think it's a totally uncessary absurd idea (also an opportunity for massive corruption as are all of these projects) - I dare say most will be pleased this and other plans have been shelved!

I think you'll find that the rice guarantee is one of the biggest scams going.

This has 'abuse me' written all over it. Importing cheap rice from neighbouring countries and exporting it as 'Thai' is about to become a very popular activity.

[Buchholz]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

The delayed projects were never part of PTP policies. They were the Dems way of paying back the puppet masters in kickbacks etc of high profile big face projects.

PTP is correct in delaying these projects in order to prioritise their own policies as laid out in their election manifesto. And delay" is the operative word....not cancelled. (all tho that may be the ultimate fate for some of the Dems ill conceived dreams.)

PTP's campaign manifesto contained oodles of these mega-projects.

[Thaddeus]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

The delayed projects were never part of PTP policies. They were the Dems way of paying back the puppet masters in kickbacks etc of high profile big face projects.

PTP is correct in delaying these projects in order to prioritise their own policies as laid out in their election manifesto. And delay" is the operative word....not cancelled. (all tho that may be the ultimate fate for some of the Dems ill conceived dreams.)

PTP's campaign manifesto contained oodles of these mega-projects.

Still a man hears what he wants to hear and disregards the rest.

Paul Simon.

[Ricardo]

The delayed projects were never part of PTP policies. They were the Dems way of paying back the puppet masters in kickbacks etc of high profile big face projects.

PTP is correct in delaying these projects in order to prioritise their own policies as laid out in their election manifesto. And delay" is the operative word....not cancelled. (all tho that may be the ultimate fate for some of the Dems ill conceived dreams.)

These projects most certainly were part of PTP's pre-election promises.

If they contained kickbacks to "the puppet masters", then why did PTP adopt them, perhaps because they wanted to get their own share of the brown-envelopes, once in power ? Now they realise that some of their pre-election promises must be put off, because they're not all affordable, they should explain why didn't they cost them before adopting them ? Was it greed or incompetence ?

And I would predict that the Chinese will be very unhappy, to see their high-speed freight-rail strategic-plan delayed, by the new government.

However if this leads the cancellation, of the plan to acquire several un-needed elderly submarines from Germany, I doubt too many will weep.

Edited August 13, 2011 by Ricardo

[Crushdepth]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

The delayed projects were never part of PTP policies. They were the Dems way of paying back the puppet masters in kickbacks etc of high profile big face projects.

PTP is correct in delaying these projects in order to prioritise their own policies as laid out in their election manifesto. And delay" is the operative word....not cancelled. (all tho that may be the ultimate fate for some of the Dems ill conceived dreams.)

Oh yes they were. Half of them were 'brilliant ideas' of the Great Man Himself. For example (my personal favourite) the mega dam project to "solve" Bangkok's flooding problems.

[Colin Yai]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

Of course when they made all these pie crust promises "made to be broken" they had no idea that almost all the rest of the worlds economy's were up shits creek without a paddle,LOL.

[SICHONSTEVE]

Further, a cut in the corporate income-tax rate from 30 to 23 per cent would lead to lower revenues for the government.

Really? How possible?

Whay do you mean?? It's pretty obvious!!! If companies pay less corporate tax then the tax take is going to be lower

[dcutman]

Meanwhile, Boonchai Charassaengsomboon, director of the macroeconomic policy bureau at the Fiscal Policy Office, said Thailand might be adversely affected by the threat of a global economic slowdown as the country is dependent on income from exports and tourism.

However, the situation is unlikely to be similar to the 2007-08 global financial crisis that caused the Thai economy to contract in 2009, he said.

Is Boonchai so sure about this? Or is he saying it is going to be far worse?

Edited August 14, 2011 by dcutman

[Estrada]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

Let me translate: Brown envelopes have already been received in respect to previous projects such as the Skywalk to Bangna. As happens every election if the ruling party is ousted, the projects are put on hold unless further incentives (brown envelopes) are produced. If not, the projects are cancelled. This happened with the Hopewell project when Sir Gordon Wu refused to issue any more brown envelopes to lubricate the wheels of Government. The result was "Hopewell Henge" the Thai version of Stonehenge, a fitting monument to the system here.

[otherstuff1957]

I love being able to say "I told you so" . Here's something I posted a couple of months ago while discussing the consequences of a PT win:

Quite frankly, it probably won't make much difference to us Expats or to most Thais. The biggest changes will the the cancellation (which will be advertised as realignment ) of the various BTS/MRT routes that have not yet begun construction, some flashy, short-term (unsustainable) freebies like credit cards for farmers and taxi drivers, an outbreak of peace on the Cambodian/Thai border and possibly a new mega-project or two. Also, someone close the the government will get very rich selling overpriced Chinese notepads to the Govt. for their 'Every Student Gets a Notepad Scheme". A token number of students will actually get notepads. The rest will either get lost in the paperwork or disappear from the warehouses.

I was wrong about them saying that they would not cancel the lines openly though.... I guess that they have just written off the Bangkok voters as a lost cause, so they aren't going to waste any more time or money in the Big Mango!

[scorecard]

Large projects are likely to be delayed, such as railroad and mass-transit construction

Other planned reforms include the government increasing salaries of civil servants, and new university graduates earning a minimum of Bt15,000 per month.

Additional priorities include tax exemptions for first-time car buyers and first-time home purchases, he said.

The campaign lies are being exposed one by one... all within just a couple of days of assuming office.

.

delayed projects were never part of PTP policies. They were the Dems way of paying back the puppet masters in kickbacks etc of high profile big face projects.

PTP is correct in delaying these projects in order to prioritise their own policies as laid out in their election manifesto. And delay" is the operative word....not cancelled. (all tho that may be the ultimate fate for some of the Dems ill conceived dreams.)

Wrong. Mega projects were mentioned numerous times in the election campaigns by the thaksin pyramid company.

First home buyers, first car buyers get priority etc. Well that's easy to analyze. Focus on things which are very close to home, win more votes.

The truth is that Thailand does urgently massive infrastructure improvements, modern well equipped schools is one plus big budget to change the education methodology.

Specific to education. Not mentioned once in yinglucks speeches, except for toys.

Wonder when we will hear the details of 'everybody will be rich within six months', or perhaps that's on the 'delayed' list.

Edited August 14, 2011 by scorecard

[rubl]

To really help improve the economical situation in the North and especially North-East the infrastructure needs to be improved, the region made accessable. Railroads come to mind, so plan and build them. Just continuing the keep the population on hand-outs is not an improvement