Agreement reached on Bt2.6-trillion fiscal budget for the next year; LPG price to rise

[Lite Beer]

Agreement reached on Bt2.6-trillion fiscal budget for the next year; LPG price to rise
Suphannee Pootpisut
The Nation

BANGKOK: -- The country's ruling junta is expected to deliver a Bt2.6-trillion fiscal 2015 budget, in which a Bt250-billion deficit has been set and Bt455 billion has been allocated for investments - including projects linked to feasibility studies.

Funds spent on infrastructure projects will be raised via loans.

The agreement was reached yesterday at a meeting of the Finance Ministry, the National Economic and Social Development Board, the Bank of Thailand and the Budget Bureau.

Somsak Chotrattanasiri, director of Budget Bureau, said the budget was based on an economic-growth forecast of 6.3 per cent and an inflation target of 2.3 per cent.

He said the Bt250-billion deficit would be the same as this year's.

If the budget gets final approval by the National Council for Peace and Order (NCPO), it should be implemented on October 1 as scheduled.

Somsak said the allocation for investments was set at 17.5 per cent of the total budget, or Bt455 billion.

He said the investment element of the budget would need to be discussed in detail to ensure the spending would be in line with the country's economic road map.

"Under the fiscal 2015 investment budget, there will be some projects related to feasibility studies, including design work and expropriations, that were outlined in the Bt2-trillon loan bill for infrastructure projects," he said. He added that spending on projects that have undergone feasibility studies would be set at an appropriate amount, while the source of funds for investments in infrastructure projects would be loans.

However, Somsak said the bureau had already allocated the budget for three main portions - minimum regular, primary and obligatory spending, which accounted for 70 per cent of the total. The remaining budget (Bt780 billion) would be spent in line with the government's strategic plan.

"This portion will wait for the NCPO's decision, which will be sought from the Cabinet or the NCPO on July 15," Somsak said.

Because of the absence of a House of Representatives, the bureau has proposed that the NCPO form a committee to screen the budget allocations before it is forwarded to His Majesty for royal approval by September 22 and for announcement on October 1.

Fuel prices are urgent: Prajin

A re-jig of fuel prices - including liquefied petroleum gas, natural gas for vehicles and diesel - is an urgent matter, so the Energy Ministry will go ahead with a plan to increase LPG prices, which have to be raised by another Bt0.50 per kilogram this Sunday, from Bt22.63 at present.

This was announced by Air Chief Marshal Prajin Juntong, the junta's chief of economic affairs, after talks with Energy Ministry officials yesterday.

Energy policies and plans initiated before the NCPO seized control in a coup would be allowed to continue as long as they do not affect the economy, he said.

The NCPO will consider the appointment of the National Energy Policy Committee, the supreme body for the sector, next week, Prajin said.

In regard to the reshuffle of managers and the boards of state enterprises, Prajin said he would hold a meeting today with representatives from all 56 state enterprises.

"From a study, we've found there are 800 board members and 26 related laws. Hence there will have to be careful consideration and any conduct will follow the rules and regulations of the Stock Exchange of Thailand," he said.

-- The Nation 2014-05-31

[rickirs]

A budget based on an economic forecast of a 6% growth rate?

I thought the previous forecast of about 3% by the PTP administration was downgraded by the present government to 2% while Moody's forecasted zero growth. GDP Growth Rate in Thailand averaged 0.93 Percent from 1993 until 2014, reaching an all time high of 11.40 Percent in the first quarter of 2012 and a record low of -11.10 Percent in the fourth quarter of 2011. It appears there might be an overly optimistic expectation for growth in the new budget but such growth would be necessary to meet new government debt obligatons.

I hope only the best for Thailand that all economic expectations are met.

[robblok]

A budget based on an economic forecast of a 6% growth rate?

I thought the previous forecast of about 3% by the PTP administration was downgraded by the present government to 2% while Moody's forecasted zero growth. GDP Growth Rate in Thailand averaged 0.93 Percent from 1993 until 2014, reaching an all time high of 11.40 Percent in the first quarter of 2012 and a record low of -11.10 Percent in the fourth quarter of 2011. It appears there might be an overly optimistic expectation for growth in the new budget but such growth would be necessary to meet new government debt obligatons.

I hope only the best for Thailand that all economic expectations are met.

I have to agree here.. seems a bit strange. Seems like they want to overspend just like the PTP did by not including the rice scheme in the budget. At least they included the transport upgrades in the budget.

But still not a good thing to also overspend.

Also let the diesel prices rise why should they have a free ride while people on normal benzine get no such thing.

Edited May 31, 2014 by robblok

[JesseFrank]

I love the title " agreement reached", as if there was a choice.

[Dr Bruce]

A budget based on an economic forecast of a 6% growth rate?

I thought the previous forecast of about 3% by the PTP administration was downgraded by the present government to 2% while Moody's forecasted zero growth. GDP Growth Rate in Thailand averaged 0.93 Percent from 1993 until 2014, reaching an all time high of 11.40 Percent in the first quarter of 2012 and a record low of -11.10 Percent in the fourth quarter of 2011. It appears there might be an overly optimistic expectation for growth in the new budget but such growth would be necessary to meet new government debt obligatons.

I hope only the best for Thailand that all economic expectations are met.

If the Junta tells you that growth will be 6%, then growth will be 6%. It is not for the people to question the experts in the Army. The only way that the Junta could possibly fail to achieve 6% will be because of outside forces sabotaging the plans. Then they will have to deal with the people who do not believe.

[allan michaud]

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A budget based on an economic forecast of a 6% growth rate?

I thought the previous forecast of about 3% by the PTP administration was downgraded by the present government to 2% while Moody's forecasted zero growth. GDP Growth Rate in Thailand averaged 0.93 Percent from 1993 until 2014, reaching an all time high of 11.40 Percent in the first quarter of 2012 and a record low of -11.10 Percent in the fourth quarter of 2011. It appears there might be an overly optimistic expectation for growth in the new budget but such growth would be necessary to meet new government debt obligatons.

I hope only the best for Thailand that all economic expectations are met.

Without all the figures of the past few years it's difficult to assess. For instance if the past year has been awful, which I am sure it has, year on year, 6% growth might be very realistic. I see the biggest problem being the ever increasing losses from the rice scam, which are only just being felt by the country. The price of Thai rice continues to plummet so the losses are only going to increase as the stockpile is sold off. It will take several painful years for Thailand's main export business to get over this mess.

[Steiner]

Also let the diesel prices rise why should they have a free ride while people on normal benzine get no such thing.

A rise in diesel prices has a knock on effect on every item transported by truck and van.

Those are essential items for living, not a trip to the nail bar at high revs in a hello kitty pimped out jazz/brio/yarris/equivalent small car.

Also diesel is less polluting than petrol and gives better mpg so should be promoted as a fuel.

[lahgon29]

Also let the diesel prices rise why should they have a free ride while people on normal benzine get no such thing.

A rise in diesel prices has a knock on effect on every item transported by truck and van.

Those are essential items for living, not a trip to the nail bar at high revs in a hello kitty pimped out jazz/brio/yarris/equivalent small car.

Also diesel is less polluting than petrol and gives better mpg so should be promoted as a fuel.

But diesel is more polluting than LPG.. It would be nice If vehicle pollution was considered sometimes. The air in the cities here is not very clean.

[Thai at Heart]

economic-growth forecast of 6.3 per cent

Cough, cough, splutter splutter. And they said Yinglucks bunch were cooking the books? Who the hell came up with that number?

[Eric Loh]

Infrastructure projects raised via off budget loan. Havent I heard this before and what will the constitution court say about that. For sure it mades them looking rather foolish like a kid caught with his hands in the cookie jar.

[fab4]

"From a study, we've found there are 800 board members and 26 related laws. Hence there will have to be careful consideration and any conduct will follow the rules and regulations of the Stock Exchange of Thailand," he said.

I'm sure he's aware of who's on the Board of Directors of, say, PTT for example

[robblok]

Also let the diesel prices rise why should they have a free ride while people on normal benzine get no such thing.

A rise in diesel prices has a knock on effect on every item transported by truck and van.

Those are essential items for living, not a trip to the nail bar at high revs in a hello kitty pimped out jazz/brio/yarris/equivalent small car.

Also diesel is less polluting than petrol and gives better mpg so should be promoted as a fuel.

So what.. IMHO diesel should then only be subsidized for companies, not for everyone.

I mean fortuners and stuff burn through the diesel like crazy why should normal people pay for that. Guess the farangs with a diesel car would be royally pissed.

[Lite Beer]

NCPO says oil prices must be adjusted under market mechanisms
By Digital Content

BANGKOK, May 31 -- The National Council for Peace and Order (NCPO), which staged the May 22 military coup in Thailand, has said oil prices in Thailand have to be adjusted in line with market mechanisms, implying that diesel oil price which is pegged at Bt30 per litre in the past because of the government subsidy may see its price increased soon.

ACM Prachin Chantong, deputy chief of NCPO, said late on Friday that concerned energy agencies are considering to raise the price of diesel which is mainly used by the transportation sector from Bt30 baht a litre, while the price of liquefied petroleum gas (LPG) for household use will be increased by 50 satang a kilogramme to Bt23.13 baht from June 1.

ACM Prachin, also the Air Force commander in chief, said after visiting the Energy Ministry that LPG price for household use would be increased monthly until its price reaches Bt24.83 per kilogramme.

Regarding energy reform which has been proposed by many people, he said the NCPO believed energy prices in Thailand should move in line with market mechanisms and that the NCPO would try to eradicate problems in order to promote fairness for all concerned.

ACM Prachin said he had discussed several issues with senior officials of the Energy Ministry and that seven urgent issues would be proposed to the NCPO for its consideration.

The seven issues are: oil transportation between midnight- 4.00am, which is the curfew period imposed by the military junta; allowing energy operators to perform duties during the curfew time; allowing the permanent secretary of the Energy Ministry to perform duties during the absence of an appointed minister; and launching a campaign on lowering electricity consumption in the South during maintenance of a natural gas platform scheduled from June 13 to July 10.

Other issues are a plan to borrow money aimed at boosting liquidity of the Oil Fund, law amendment for NGV stations and allowing for imports of explosives and related equipment used for petroleum production and exploration. (MCOT online news)

-- TNA 2014-05-31

[robblok]

economic-growth forecast of 6.3 per cent

Cough, cough, splutter splutter. And they said Yinglucks bunch were cooking the books? Who the hell came up with that number?

I agree.. and I am pro coup, this is cooking the books.

[robblok]

Infrastructure projects raised via off budget loan. Havent I heard this before and what will the constitution court say about that. For sure it mades them looking rather foolish like a kid caught with his hands in the cookie jar.

If this is true.. could not really get it in the article because a deficit always has to be financed with loans. But if.. then its just as wrong. Though the scraping of the high speed train is a blessing.

[robblok]

Ah seems they read my mind about the diesel, and yes I don't use diesel but have a normal car and bike. So its good to see there is some fairness in the world. Keeping that down there with raising fuel prices is crazy. Higher price less cars on the road YES.

If they were really concerned about businesses then allocate business owners with a card and a max amount of liters per year at a cheaper price. No need to subsidize normal people in one kind of car and not the others.

[Mango Bob]

They don't care about the people who use diesel including trucks and pickups use in business. Theycan not be voted out of office,so they care less about the people.

[Redhawk]

..and step by step you can see what is really behind the curtain, that won't be the only burden as if there are not already enough burden on the so called middle and lower class of income! Bureaucrats have officail cars, better income and other benefits but bring almost nothing to the GNP.

[Artisi]

Negative negative and more negative, bloody hell you get sick of hearing from the same negative generating posters - though I suppose they thought the sun shone out of the a r s e s of the ever so brilliant prior PTP government.

give it a break people, the army are trying to get a broken down Thailand on the move again - any major problems can be corrected on the run - unlike the other idiots we had running the country- just bury any problems or fund it from other sources and say everything is sweet.

Edited May 31, 2014 by Artisi

[robblok]

They don't care about the people who use diesel including trucks and pickups use in business. Theycan not be voted out of office,so they care less about the people.

Partly that is a good thing then they can take the tough decisions that have to be taken.

Can you explain to me why "normal" people not businesses would have to be subsidized while other "normal" people driving normal cars not those big pickups that block the roads are not subsidized ?

It makes a lot of sense with the rising oil cost to rise diesel too else it would be like the rice scheme just too expensive with oil prices rising. Now people will probably use their pickups less and that would mean roads that are easier to travel.

[robblok]

..and step by step you can see what is really behind the curtain, that won't be the only burden as if there are not already enough burden on the so called middle and lower class of income! Bureaucrats have officail cars, better income and other benefits but bring almost nothing to the GNP.

Eh the lower and middle class also ride normal cars that don't get the cheap fuel. So either all of us or none.

[citizen33]

Is the military government practising Thaksinomics? It sounds a bit far fetched, but here is one writer who thinks so.

asiapacific.anu.edu.au/newmandala/2014/05/31/thaksin-thinks-prayuth-acts/

[Eric Loh]

Is the military government practising Thaksinomics? It sounds a bit far fetched, but here is one writer who thinks so.

asiapacific.anu.edu.au/newmandala/2014/05/31/thaksin-thinks-prayuth-acts/[/

Even Ahbisit borrowed some of Thakinomics. Irony of some who criticize but adopt the same policies.

[tim armstrong]

Thailand's economics are sound despite the coup. The baht has remained stable, overseas reserves are high and it looks like the Army is just finding out about the government's neglect of infrastructure, and basic commodities like fuel. Thailand does not depend on rice exports as some might think. The curfew affecting car industry production needs to be revisited. The next big problem will be taxation, but maybe there will be an elected government by then. I still think the Army is doing a good job. To the rest of the world - take the blinkers off and have a good look at what has been achieved so far.

[robblok]

Is the military government practising Thaksinomics? It sounds a bit far fetched, but here is one writer who thinks so.

asiapacific.anu.edu.au/newmandala/2014/05/31/thaksin-thinks-prayuth-acts/[/

Even Ahbisit borrowed some of Thakinomics. Irony of some who criticize but adopt the same policies.

You guys credit your guru with too much.

Back in the Netherlands fuel subsidies for the transport sector and the agricultural sector is normal.

For agricultural purposes there is red diesel (diesel with a coloring) that has almost no tax on it. Any normal car caught with it will be heavily fined, only farmers and such can use it for their machines.

For the transport sector there are fuel rebates and such.

Thank you for informing me that this was all invented by Taksin and that the Dutch government should idolize him like some people do here without thinking for themselves.

I am sure if you look all over the world you will find similar schemes.

[Eric Loh]

Thailand's economics are sound despite the coup. The baht has remained stable, overseas reserves are high and it looks like the Army is just finding out about the government's neglect of infrastructure, and basic commodities like fuel. Thailand does not depend on rice exports as some might think. The curfew affecting car industry production needs to be revisited. The next big problem will be taxation, but maybe there will be an elected government by then. I still think the Army is doing a good job. To the rest of the world - take the blinkers off and have a good look at what has been achieved so far.

The neglect on infrastucture has been highlighted by previous governments including Ahbisit. However none has the fortitude to do something about it except Yingluck's government. What is added to the neglect on roads, rails, ports and city transportation are trans link between Mynmar and other Indo-China hinterland.

Again on the subject of taxation, it was Yingluck government who reduce corporate tax and was on verge of revising the structure for personal tax to increase the tax payer base.

Not trying to pander to Yingluck but these are the facts which the army recognized and considering to bring back to their policies. These are only good for the competiveness and productivity of Thailand. However I will not praising them as all these are only under review. I will reserve my praise after they officially adopted all the infrastructure which include the water management projects.

[kimamey]

Is the military government practising Thaksinomics? It sounds a bit far fetched, but here is one writer who thinks so.

asiapacific.anu.edu.au/newmandala/2014/05/31/thaksin-thinks-prayuth-acts/[/

Even Ahbisit borrowed some of Thakinomics. Irony of some who criticize but adopt the same policies.

You guys credit your guru with too much.

Back in the Netherlands fuel subsidies for the transport sector and the agricultural sector is normal.

For agricultural purposes there is red diesel (diesel with a coloring) that has almost no tax on it. Any normal car caught with it will be heavily fined, only farmers and such can use it for their machines.

For the transport sector there are fuel rebates and such.

Thank you for informing me that this was all invented by Taksin and that the Dutch government should idolize him like some people do here without thinking for themselves.

I am sure if you look all over the world you will find similar schemes.

The UK has red diesel as well. I didn't know the Netherlands did as well or who did it first.

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[kerrysum]

Just remember,

Everything is a commodity, even human life.... Oh what a sickening thought.......

Just my two cents...... The movers and the shakers of the world have really done themselves, a great favor until it affects them.....

kilosierra... No wonder why their is such discontent in the world....