Economic development plan to focus on sustainable growth

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PRAYUTH'S GOVERNMENT
Economic development plan to focus on sustainable growth
THE NATION

BANGKOK: -- AMID LINGERING economic ills such as inefficient tax collection, mounting public debt, prodigal energy use and water shortage in the agricultural sector, the government's policy will be divided into three phases, aimed at continuity and sustainability of economic expansion.

Raise potentials and competitiveness of the Thai economy six months political unrest, Thai economy still sluggish at mid-2014, tax revenue collection, not meeting targets, must improve efficiency in the fuel consumption and water resource use by the industrial and agricultural sector, especially in the dry season where water shortage is a typical problem.

The three phases in which the government will tackle the problems are: quick fix for urgent issues; short-term issues; laying the foundation for fixing problems on a long-term basis.

The pressing issues on which the government will proceed include expediting unused 2014 budget expenditure by year-end and proceeding with the economic stimulus measures of the National Council for Peace and Order (NCPO) to create jobs and boost domestic consumption. The regime believes it is also important to attract investment in viable sectors, such as the mass-transit system that will also benefit the property, construction and financial sectors.

The government will support farmers by helping them reduce their production costs and help them in tackling weak commodity prices. It will reduce the obstacles in the way of Thai exports through quicker customs processes, procedures and inspections, and explore new export markets to make up for the drop in exports to traditional markets.

The government sees the need to promote and support the tourism sector, especially in the current martial-law environment. Popular tourist destinations must be developed or upgraded, security for tourists be boosted, and standards of facilities and services for tourists must be raised.

In the short-term phase, the government expects to focus on maintaining optimum balance between monetary and fiscal policies to support growth and financial stability, which are required to maintain and attract foreign investments.

Water management must be improved to reduce droughts during the dry season and flood-prevention facilities must be upgraded during the wet season.

Energy prices must be restructured to reflect actual costs to promote efficient use of imported energy by consumers and industrial users. The government believes it must support natural-gas exploration and development of alternative or green energy sources while also joining neighbouring countries in energy-related projects.

The current tax-collection system must be changed, the regime believes, so as to expand the tax base in a more equitable manner and to narrow the income gap between the rich and the poor, such as through inheritance and land/building taxes.

A critical challenge for the government is to manage the Bt700-billion public debt incurred by the previous elected government, which it claims will be a burden on the fiscal budget for the next five years. The government will have to seek and secure long-term funding sources at reasonable rates to restructure and expand the current debt repayment schedule.

The long-term phase will include infrastructure development - roads, high-speed trains, a dual-track rail system for cargo, shipping piers and ports, the mass-transit system, the logistics network, dredging of natural waterways, and unblocking of canals.

The government plans to help the industrial and agricultural sectors as well as small and medium-sized firms to come up with more value-added products, and improve efficiency and competitiveness, lower production costs to boost profit margins, maintain proper balance between demand and supply to avoid excess supply situation which will result in weak commodities prices.

The regime will support the growth of the Internet, digital technology and telecommunications by narrowing the digital divide to ensure more widespread and timely access to news / information / entertainment and support the rapidly growing digital-media industry.

It will expand Thailand's role in the Asean Economic Community so as to reap what it sees as the vast benefits of an integrated Asean markets which will come into effect around year-end 2015.

Thailand must establish tax, comercial laws, trade regulations, transportation infrastures, telecommunications, logistics, upgraded border trade areas, special economic zones and human resource to support international trade under AEC. The goal is to raise the standards of Thais and Asean population and reap maximum benefits from the AEC - single market concept.

Regarding research and development, technology and innovations, the government plans to allocate at least 1 per cent of GDP to support R&D with a 30:70 ratio of private and state participation in accordance with social and economic development plans to boost the country's competitiveness.

The government will strive to coordinate R&D development activities between the state and private sector in an efficient and effective manner. Laws, regulations, taxes and incentives will encourage investment in R&D and innovations and adoption of modern, fuel-efficient, clean technology to preserve the environment and conserve limited energy resources to ensure balance between technology advancement and environmental preservation.

Source: http://www.nationmultimedia.com/politics/Economic-development-plan-to-focus-on-sustainable--30243006.html


-- The Nation 2014-09-11