Subsidy burden 'means govt must act carefully'

[Lite Beer]

Subsidy burden 'means govt must act carefully'
Khanittha Thepphajorn
The Nation

BANGKOK: -- The Senate committee on finance, banking and financial institutions has advised the government to carefully plan its economic strategies, as it has laden itself with a burden of well over Bt500 billion from its populist policies.

Senator Witawad Boonyasatid, who leads the panel, has done a report on concerns about populist policies and their impact on national debt. It will be presented to the Senate soon.

The report says the government depended on a reduction in interest rates to boost the economy - and that reflected inefficient financial policies.

The populist policies that aim to provide opportunities for the poor to gain access to financial sources such as a debt moratorium or credit cards for farmers. These put restraints on financial moves and the macro economy. And other measures including the hike in the minimum wage also distort market mechanisms, causing higher business costs and hurting competitiveness in the long run.

A Bank of Thailand study showed labour intensive industries saw a drop in profit of up to 35 per cent, while small and medium-sized businesses were affected too, the report said.

The committee urged the government to boost investors' confidence and increase state investment. Successful management of mega-projects such as the flood and water management scheme would boost confidence. However, the government should always keep financial stability in mind.

Besides providing populist policies to help targeted groups, the government should use populist policies to promote savings to balance the nation's deficit, the report said.

-- The Nation 2013-09-22

[NongKhaiKid]

This is simply being wise after the event.

The rice pledging scheme, for example, has plagued the government from day one yet they cannot and will not change it and are throwing good money after bad to remain popular and protect votes.

it's wasted effort pointing anything out to this government as they live in their own little perfect world which can only get better when " Johnny comes marching home " and sets about all of those who wronged him.

[Tatsujin]

The Senate committee on finance, banking and financial institutions has advised the government to carefully plan its economic strategies, as it has laden itself with a burden of well over Bt500 billion from its populist policies.

When are they going to get it through their heads. It's not the Govt. with the "burden", it's the COUNTRY. It affects everyone.

With the new education reform they announced, they need to teach people to look beyond the end of their own noses.

[worgeordie]

No problem the Governments going to take on 2.2 Trillion Bht debit,some of that

will be used to cover the debit created by populist polices,what a way to run the

economy,seems like this government is determined to join the likes of Greece,

Spain,Portugal,etc,etc, in a financial black hole.

regards Worgeordie

[jaidam]

Borrow from Peter to pay Paul. Hooray for Thaksinomics!

[phitsanulokjohn]

That bubble is almost to the point of bursting,and when it does, it's gonna make a big old mess.

[siampolee]

BANGKOK: -- The Senate committee on finance, banking and financial institutions has advised the government to carefully plan its economic strategies, as it has laden itself with a burden of well over Bt 500 billion from its populist policies.

This government puts one in mind of a fisherman or fisher woman who lets the fish feed on the ground bait lure he or she distributes on the water, then when the fish are feeding well in go the baited hooks and nets. Fish is caught landed and eaten.

Only in this case as has already been said the bait is money and the hook and the net are total debt bondage for the people of Thailand whilst the Thaksin fisher folk clan feed themselves on the rich harvest produce of the enslaved as a result of the debt bondage fishing expedition

[drdoom6996]

Just another headline. The government will do nothing about anything except getting it's hands on the 2.2 trillion.

[Mudcrab]

BANGKOK: -- The Senate committee on finance, banking and financial institutions has advised the government to carefully plan its economic strategies, as it has laden itself with a burden of well over Bt 500 billion from its populist policies.

This government puts one in mind of a fisherman or fisher woman who lets the fish feed on the ground bait lure he or she distributes on the water, then when the fish are feeding well in go the baited hooks and nets. Fish is caught landed and eaten.

Only in this case as has already been said the bait is money and the hook and the net are total debt bondage for the people of Thailand whilst the Thaksin fisher folk clan feed themselves on the rich harvest produce of the enslaved as a result of the debt bondage fishing expedition

Until there are no more fish. I watched a documentary about a croc farmer in Thailand who used to feed his crocs fish. He now feeds them snakes as the "fish went away". The fish never "went away' - there aren't any left in that area.

Edited September 22, 2013 by Mudcrab

[kimamey]

No problem the Governments going to take on 2.2 Trillion Bht debit,some of that

will be used to cover the debit created by populist polices,what a way to run the

economy,seems like this government is determined to join the likes of Greece,

Spain,Portugal,etc,etc, in a financial black hole.

regards Worgeordie

To be fair to Spain it wasn't so much the government that caused the problems for them and in fact they managed their finances very well. It was the banks borrowing money internationally to lend to property buyers who then defaulted on those loans. The government then had to step in to stop a banking collapse which landed them in the position they are now.

You may be right about Thailand going down a similar route but they do have more financial reserves. At the moment.

[MaxLee]

Subsidy burden 'means govt must act carefully' you give someone more money out of the blue they want the whole bags and never want less anymore

The rice pledging scam and the upcoming rubber and sugar pledging scam has turned the local AGAINST the nasty nasty EU Falang and their competitive free trade proposals, so that's why the farmers are beginning to develop xenophobia against international Falang market policies...

[Baerboxer]

The government follows its own agenda, laid down by the boss. They won't take any notice of anything else, regardless of the possible consequences.

[shaurene]

No problem the Governments going to take on 2.2 Trillion Bht debit,some of that

will be used to cover the debit created by populist polices,what a way to run the

economy,seems like this government is determined to join the likes of Greece,

Spain,Portugal,etc,etc, in a financial black hole.

regards Worgeordie

Governments cannot control a world priced commodity the markets control them. Same in Europe, they have warehouses full of farm products, grains, meat, dairy products they paid the farmers for above the market prices but the EU will not sell it back at prices lower than they paid to any of the EU countries they sell it to none EU countries at a loss.

[metisdead]

Off topic posts have been removed. This is not about the UK Labour Party, the Tories, etc. Stay on topic when posting.