Thaksin Insists Government Budget Management Is OK

[Jai Dee]

PM INSISTED THAT GOVERNMENT DOES NOT HAVE LIQUIDITY PROBLEMS

Prime Minister Thaksin Shinnawat (ทักษิณ ชินวัตร) insisted that the government does not have liquidity problems, explaining that the government decided to expand more credit lines because of growing economy. Prime Minister Thaksin said that the cabinet approved issuing of 80 billion baht treasury bonds, because the initial estimates indicate that the country must have 170 billion baht in cash circulation. However, he insisted that the government does not have liquidity problems, explaing that the country’s economy is growing. He added that the government’s budget management is efficient, as its spending meets estimated targets, therefore, the government must have cash on-hand for circulation, as the economy is booming.

The Prime Minister also indicates that when the government assumed the office, the budget was set at only 900 billion baht, but now the budget has increased to 1.3 trillion baht, an increase by 50%. He said that the liquidity has increased accordingly.

Source: Thai National News Bureau Public Relations Department - 30 November 2005

[cclub75]

The Prime Minister also indicates that when the government assumed the office, the budget was set at only 900 billion baht, but now the budget has increased to 1.3 trillion baht, an increase by 50%. He said that the liquidity has increased accordingly. 

This is exactly the problem : like the new FED chairman, who is called "helicopter" because he wanted to drop Dollars ! Excess of liquidity in the system.

Over heat... The machine needs more and more cash... inflation... pressure on the THB and the whole system... crash...

It's obvious that the gvt is runing after money. "economy booming" ? Where ? Artificially.

Soon, it will be "khep tang na khrap" time. And it's going to hurt.