Govt Is Focused On Short-Term Plans For Political Gain: Thai Opinion

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EDITORIAL

Govt is focused on short-term plans for political gain

The Nation

The administration's persistence with populist schemes raises the question of whether it has its priorities right

Although the Yingluck Shinawatra government has planned a budget for the 2012 fiscal year with spending as high as Bt2.38 trillion, the spending details do not respond well to the needs of the country, which is suffering from the ongoing flood crisis and mismanagement by the administration.

The massive flooding has prompted many economic institutions to revise the country's growth projection downwards. The Bank of Thailand, for instance, has lowered the projected growth rate for next year to only 2.6 per cent compared to its earlier forecast of 4.8 per cent.

It is clear that a lot of money will be needed to rehabilitate the country after the flood water recedes. However, the government is insisting on putting up a large amount of money to finance its populist policies, which may only benefit a select group of people. Opposition leader Abhisit Vejjajiva pointed out during the recently concluded budget debate that, for instance, the plans to provide tax rebates for first-time car buyers and tax reductions for first-time home-buyers will require several tens of billions of baht each. He added that the money for the two projects should instead be spent on rehabilitating flood-affected parts of the country and compensating the flood victims.

The Pheu Thai-led government may argue that it has to fulfil its election pledges to voters by implementing these populist schemes regardless of the circumstances. But the massive flooding has forced the government to shift its priority from boosting consumption to rebuilding after the worst deluge in 50 years.

The plan to reduce the corporate tax rate, for example, would cause the government to lose about Bt55 billion in revenue annually. And the planned exemption of contributions to the Oil Fund would cause the government to lose further huge revenues. The rice-pledging scheme will drain away about Bt100 billion, even though it is not certain if small-scale farmers will be able to benefit from this programme because most of them have seen their farms submerged. Even before the flood disaster, the government was set to borrow more to finance these policies. Additional policies to help the flood victims and the business sector will create a huge additional financial burden for the government.

It is now almost impossible for Thailand to achieve a growth rate of 4 to 5 per cent after this disaster. Instead of trying to inflate economic growth, the short-term goal should focus on how to revive beleaguered industries and companies. The goal in the medium term should be to ensure that these industries are able to grow in a sustainable manner. The government should, meanwhile, provide infrastructure and effective mechanisms to ensure that Thailand has better immunity against future natural disasters and better crisis management when they do occur.

Instead, the government continues to focus on short-term goals via these unnecessary populist policies even though they will almost certainly jeopardise the country's fiscal position.

In addition, the government has also allocated a large central budget of Bt120 billion. But the budget bill does not include details on the proposed use of this sum. Therefore, the public should call for close scrutiny to ensure that tax payers' money is well spent to serve the interests of the public, not a certain group of politicians.

In spite of the flaws in the fiscal policy that have been pointed out by the opposition parties during the debate, the prime minister still insists on going on with the original plan. She has simply come up with the answer that her government promised to implement these projects before the election.

Yingluck's answer only leads to the obvious question of whether the government has got its priorities right.

-- The Nation 2011-11-18

[KKvampire]

economic management is essential .ta

x rebates for cars in a country where only wealthy have them or poorer ones get into debt buying is wasted. If growth goes well under 5%.then the poor suffer,it was ever thus in capitilist world

.We will see if flood mismanagement is mirrored with the countrys finances because incompetence is a constant to date with Yinglucks government

Edited November 18, 2011 by KKvampire

[siampolee]

Govt is focused on short-term plans for political gain

That headline is misleading, it should read, ''For one man and his family and their cronies gain."

All the policies are designed to yet further enrich the rich and push the average man and woman further down into the morass of debt and the use of political manipulation in the pursuit of one persons dreams.

When the account is rendered there is going to be a financial disaster and if we are not careful outbreaks of violence will also escalate as we have already seen in the past.

Dark days are ahead for a once peaceful nation and its people.

[EvilDrSomkid]

In addition, the government has also allocated a large central budget of Bt120 billion. But the budget bill does not include details on the proposed use of this sum. Therefore, the public should call for close scrutiny to ensure that tax payers' money is well spent to serve the interests of the public, not a certain group of politicians.

Is it not ever thus in this country? Although I do not like the current government and their blindingly obvious hypocrisy,

any former Thai government can be accused of the same.

However, their ridiculous assertion that they have to go ahead with the budget as planned pre-flood, is staggeringly naive.

It can be explained fairly easily. They know that there is no need for a long term plan.

By the time the debt is massive, they will no longer be in power.

They don't feel like making a new budget plan from scratch, as any business would have to do to survive a crisis.

[Buchholz]

economic management is essential. tax rebates for cars in a country where only wealthy have them or poorer ones get into debt buying is wasted. If growth goes well under 5%,then the poor suffer,it was ever thus in capitalist world.

We will see if flood mismanagement is mirrored with the country's finances because incompetence is a constant to date with Yinglucks government

Along the same lines as the car tax rebates... with the addition of a personal windfall benefiting the Shinawatra Empire.

from the Tax Deductions For Up To Bt500.000: First Time Home Buyers thread:

Interesting development on the home buyer scheme with the increase in the limit for mortgages to 5 million baht from 2 million earlier.

SC Asset (the Shinawatra company that Yingluck just left and now run by Thaksin's daughter other sister) has 1,700 houses that are now eligible for the scheme.

The potential increase to their real estate business comes to 5.1 Billion Baht.

Score another for the rural poor.

They'll get a tax break when they buy a 5 million baht villa.

rah rah rah

[Bakseedaa]

Govt is focused on short-term plans for political gain

That headline is misleading, it should read, ''For one man and his family and their cronies gain."

All the policies are designed to yet further enrich the rich and push the average man and woman further down into the morass of debt and the use of political manipulation in the pursuit of one persons dreams.

When the account is rendered there is going to be a financial disaster and if we are not careful outbreaks of violence will also escalate as we have already seen in the past.

Dark days are ahead for a once peaceful nation and its people.

But the good point here S/p and I hope I am right... Thailand will go the way of Greece, but with no-one to help them, we will get many many more bahts for our dollars, and life in Thailand will become so sweet again for us Farangs... Long live Yinluck Capone...

[MEL1]

"In addition, the government has also allocated a large central budget of Bt120 billion. But the budget bill does not include details on the proposed use of this sum."

Isn't that about the cost of a few flights from Dubai to BKK, with an additional, but inclusive, expenses charge for the repatriation of some former fled fugitives?

-mel.

[localsocalman]

economic management is essential. tax rebates for cars in a country where only wealthy have them or poorer ones get into debt buying is wasted. If growth goes well under 5%,then the poor suffer,it was ever thus in capitalist world.

We will see if flood mismanagement is mirrored with the country's finances because incompetence is a constant to date with Yinglucks government

Along the same lines as the car tax rebates... with the addition of a personal windfall benefiting the Shinawatra Empire.

from the Tax Deductions For Up To Bt500.000: First Time Home Buyers thread:

Interesting development on the home buyer scheme with the increase in the limit for mortgages to 5 million baht from 2 million earlier.

SC Asset (the Shinawatra company that Yingluck just left and now run by Thaksin's daughter other sister) has 1,700 houses that are now eligible for the scheme.

The potential increase to their real estate business comes to 5.1 Billion Baht.

Score another for the rural poor.

They'll get a tax break when they buy a 5 million baht villa.

rah rah rah

The Shinwatra clan are brilliant --- and have their hand in every POT! They are ruthless!

[Buchholz]

from the Tax Deductions For Up To Bt500.000: First Time Home Buyers thread:

Interesting development on the home buyer scheme with the increase in the limit for mortgages to 5 million baht from 2 million earlier.

SC Asset (the Shinawatra company that Yingluck just left and now run by Thaksin's daughter other sister) has 1,700 houses that are now eligible for the scheme.

The potential increase to their real estate business comes to 5.1 Billion Baht.

Score another for the rural poor.

They'll get a tax break when they buy a 5 million baht villa.

rah rah rah

The Shinwatra clan are brilliant --- and have their hand in every POT! They are ruthless!

Their innovative and diverse methods of extracting money from the taxpayers is unequaled in Thailand.

.

[Mitker]

from the Tax Deductions For Up To Bt500.000: First Time Home Buyers thread:

Interesting development on the home buyer scheme with the increase in the limit for mortgages to 5 million baht from 2 million earlier.

SC Asset (the Shinawatra company that Yingluck just left and now run by Thaksin's daughter other sister) has 1,700 houses that are now eligible for the scheme.

The potential increase to their real estate business comes to 5.1 Billion Baht.

Score another for the rural poor.

They'll get a tax break when they buy a 5 million baht villa.

rah rah rah

The Shinwatra clan are brilliant --- and have their hand in every POT! They are ruthless!

Their innovative and diverse methods of extracting money from the taxpayers is unequaled in Thailand.

.

Even so, some claim he was such a bright PM and call for his return.

I mean even some who have been to school for more than a couple of years.