webfact Posted March 10, 2013 Share Posted March 10, 2013 Thirachai warns against off-budget loanThe NationThirachaiBANGKOK: -- Thirachai Phuvanatnaranubala, the first finance minister of the Yingluck Shinawatra administration, yesterday warned against the government's move to seek a Bt2-trillion "off-budget" loan for its mega-infrastructure plan."The investments are nothing of an emergency nature. There is no reason to bypass the normal budget process," Thirachai said via Facebook.The main approval route as prescribed by the Constitution was good and subject to the oversight of both the National Economic and Social Development Board (NESDB) and the Budget Bureau, he said. When Yingluck became prime minister, Thirachai emerged as the first choice for the post of finance minister.However, after serving for just about four months, he was removed in a Cabinet reshuffle reportedly for opposing the government's policy to make the central bank responsible for the country's Bt1.14-trillion debt incurred during the 1997 financial crisis.On his Facebook page, Thirachai said the development plans should be included in annual budget, as off-budget financing means improper project reviews."When off-budget financing is sought, all governments, this one or those in the past, just set up a committee to screen investment proposals."Although the NESDB and Budget Bureau are represented on the committee, the projects cannot be thoroughly scrutinised," he said.While off-budget financing is faster, it involves risks. Only a single committee is responsible for any mishaps, rather than the government agencies in charge."If (the borrowing bill) would finance an urgent project, it could be acceptable. But this is not an emergency. There is no justification to avoid routine budget vetting," he added.-- The Nation 2013-03-11 Link to comment Share on other sites More sharing options...
Popular Post Robby nz Posted March 11, 2013 Popular Post Share Posted March 11, 2013 This is one of her own telling her this. Although in the past he has been dumped for not following the party line. 3 Link to comment Share on other sites More sharing options...
dcutman Posted March 11, 2013 Share Posted March 11, 2013 While off-budget financing is faster, it involves risks. Only a singlecommittee is responsible for any mishaps, rather than the governmentagencies in charge. The only ones at risk, is the Taxpayer. Witch the real PM Thaksin Yingluck cares nothing about. Just yet another example of Thailand's progress to democracy dictatorship. Link to comment Share on other sites More sharing options...
NeverSure Posted March 11, 2013 Share Posted March 11, 2013 C'mon. They aren't loans. They are "investments" for the suckers lenders. That's what Yingluck Shinawatra told Belgium and Swiss leaders when begging for loans investments in this thread, titled: "Yingluck Calls Thailand A Haven For Foreign Investment." Pssst. Let's just keep these tttttrillions in loans off the books, eh cook? Link to comment Share on other sites More sharing options...
Popular Post Locationthailand Posted March 11, 2013 Popular Post Share Posted March 11, 2013 The fiscal irresponsibility of this Govt will leave the coffers empty and future generations in debt to the hilt. When even their own tell them it's a bad move, their arrogance by ignoring the advice continues to prove my point. But then Thaksin is hell-bent on payback for the seizure of his assets and will advise his poor sister to do his bidding with no thought to Thailand whatsoever. This is all about revenge. Throw PTP out whilst there is still a chance for Thailand. 3 Link to comment Share on other sites More sharing options...
Buchholz Posted March 11, 2013 Share Posted March 11, 2013 (edited) "The investments are nothing of an emergency nature. There is no reason to bypass the normal budget process," Thirachai said via Facebook. The main approval route as prescribed by the Constitution was good and subject to the oversight of both the National Economic and Social Development Board (NESDB) and the Budget Bureau, he said. . So similar to the 350 Billion "emergency" flood management budget that was ramrodded through without the normal checks and balances that turned out to be, a year later, not to be emergency. . Edited March 11, 2013 by Buchholz Link to comment Share on other sites More sharing options...
dcutman Posted March 11, 2013 Share Posted March 11, 2013 (edited) Hiding Public Debt Hadi Salehi Esfahani University of Illinois at Urbana-ChampaignHoe-Jeong Kim Ministry of Finance and Economy, KoreaApril 2002Abstract: This paper examines the determinants of hidden public debt-that is,government financial commitments and contingent liabilities that do notreceive official recognition and explicit budgetary allocations, but arelater on assumed by the government as additional debt outside thenormal budget. Hidden debts are large in many countries and can causemajor fiscal and macroeconomic instability. We show that the forces thatraise the demand for public expenditure, such as fractionalization anddivision in the government, also motivate the politicians to resort todisguised expenditure and debt as a means of alleviating constraints onexplicit borrowing. The tightness of such constraints also adds to theincentive to hide debt, as do factors that reduce the costs of arrangingoff-budget debts. We find that these costs decline with the extent ofgovernment intervention in the economy, especially when the economy ismore developed and interventions allow the politicians to tap on largerresources. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=306900 Edited March 11, 2013 by dcutman Link to comment Share on other sites More sharing options...
siampolee Posted March 11, 2013 Share Posted March 11, 2013 (edited) This current maladministration is outdoing the Baharn administration and their corruptness by billions, all the scams schemes are are all designed and designated as money making projects for Thaksin and his clan and their brown nosing acolytes. Lets be totally honest, the greater majority of M.P.s are selected by their families or their business cronies to buy their way into parliament via vote buying or influencing the party list selectors. Of course then if you have the money a ministry is yours for the asking. Then the looting begins. . The whole ethos of being a member of parliament is about looking after your and your families and your cronies business interests and being able to siphon off as much money as possible in the shortest possible time for you and your family and of course your cronies benefits. while ignoring the long term consequences on the country and its people who will be picking up the debt burden in the long term. The whole 2 trillion baht scam scheme is nothing more than a gigantic money trough for the selected few. No budget on the books ? With that sum of money floating around waiting to sink Thailand and its peoples into a quicksand of debt why is the budget off of the books ? Because the Thaksin clan and their brown nosing acolytes do not want Mr and Mrs. Somchai, the average Thai man and woman on the street to actually see the numbers involved along with the corruption involved, then when this current maladministration is removed from office the subsequent administration will of course be seen as the bearer of bad news financially when the bailiffs come to call. 1997 and the subsequent financial medicine will indeed seem like a picnic when the account is rendered vis a vis this 2 trillion baht scam scheme so beloved bythe P.T.P. ( Parasites and Tick Party). Thaksin and his cronies are indeed the financial blood sucking vampires and vultures of Thailand who will be feeding off of the corpse of the Thai nation and its peoples. Look carefully folks and you can see those vampires vultures circling even now as they plans are being laid for a gargantuan financial feast on a scale that has never been seen before in Thailand or even this world. Should certainly be an interesting entry in ''The Guiness Book of Records for the biggest ever national debt. Thailand will indeed become ''The Hub of Creditors and Bailiffs'' if this 2 trillion baht scam scheme is allowed to live. Edited March 11, 2013 by siampolee 2 Link to comment Share on other sites More sharing options...
AleG Posted March 11, 2013 Share Posted March 11, 2013 It's actually a 4 trillion Baht scheme... 1 Link to comment Share on other sites More sharing options...
Popular Post ramrod711 Posted March 11, 2013 Popular Post Share Posted March 11, 2013 "The investments are nothing of an emergency nature. There is no reason to bypass the normal budget process," Thirachai said via Facebook. The main approval route as prescribed by the Constitution was good and subject to the oversight of both the National Economic and Social Development Board (NESDB) and the Budget Bureau, he said. . So similar to the 350 Billion "emergency" flood management budget that was ramrodded through without the normal checks and balances that turned out to be, a year later, not to be emergency. . just to be clear, i had nothing to do with it. ramrod711 3 Link to comment Share on other sites More sharing options...
SOTIRIOS Posted March 11, 2013 Share Posted March 11, 2013 .......man.......this siphoning is out of control....... ....where is all the money going.... Link to comment Share on other sites More sharing options...
Pimay1 Posted March 11, 2013 Share Posted March 11, 2013 .......man.......this siphoning is out of control....... ....where is all the money going.... Where there is no accountability there is no transparency. When there is no transparency there are fraud or corruption. Link to comment Share on other sites More sharing options...
Popular Post khunken Posted March 11, 2013 Popular Post Share Posted March 11, 2013 I have a lot of respect for K. Thirachai. He didn't swallow his principles to follow the corrupt party line. He was right about the FIDF B1.1Tn swept under the carpet to allow other borrowings & keep the 'official' level under 60%. He is right again to point out that (1) this is not emergency funding that warrants a decree & (2) it should not be 'off budget', again to maintain that 60% level. Off-budget sounds a bit like sub-prime & I suspect the lack of transparency involved is similar. 4 Link to comment Share on other sites More sharing options...
waza Posted March 11, 2013 Share Posted March 11, 2013 Fair warning, massive loans without checks and balances is a very fast train to economic ruin. Link to comment Share on other sites More sharing options...
ratcatcher Posted March 11, 2013 Share Posted March 11, 2013 Not to take away from the seriousness of this thread, but I cannot help admire the Thai tie of Thirachai. This is a man, among many others, not necessarily of PTP persuasion, who can clearly read the writing on the wall regarding this country's financial future including what must surely be opium induced pipe dreams regarding spending and major projects. I also believe siampolee has invented a new acronym worthy of mention. The BNA ie Brown Nosing Acolytes. Thaksin & his BNA. Link to comment Share on other sites More sharing options...
billoutt Posted March 11, 2013 Share Posted March 11, 2013 (edited) I'll bet he won't be fired this time. Edited April 12, 2013 by metisdead Font Link to comment Share on other sites More sharing options...
rubl Posted March 11, 2013 Share Posted March 11, 2013 (edited) BTW only three and a half more months to start allocating the THB 350 billion which we really needed so urgently that a special degree was issued to allow borrowing that amount. In December 2011 or January 2012, the issuing of the decree that is. BTW this 350 billion decree was only one of two. The other one was of moving 1.14 trillion Baht under the BoT to reduce worries and possible headaches from just looking at it. Still some tell us, the economy is booming, Fitch happy. surely all Thai are also happy and rich and looking forward to Songkhran? Edited March 11, 2013 by rubl Link to comment Share on other sites More sharing options...
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