Stimulus package delayed: Thai Minister Pridiyathorn

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ECONOMY
Stimulus package delayed: Pridiyathorn
Erich Parpart
The Nation


MR Pridiyathorn Devakula

BANGKOK: -- Thailand's economic growth this year is likely to fall short of its target of 1.5 per cent, as Deputy Prime Minister MR Pridiyathorn Devakula, who is in charge of the economy, conceded that a proposed Bt324-billion stimulus package is yet to be released to kick-start the economy by the year-end.

The Fiscal Policy Office recently cut its GDP growth estimate for the year to 1.4 per cent while the University of Thai Chamber of Commerce has maintained its growth forecast of 1.3 to 1.5 per cent. The Bank of Thailand is expected to revise its recent growth forecast of 1.5 per cent.

Speaking at a seminar arranged by the Economic Society of Thailand and the National Institute of Development Administration yesterday, Pridiyathorn said the economy in 2014 had slowed due to a lack of real public investment in the past 10 months along with the uncertainty surrounding the global economic recovery. He also said the government stimulus package, which aimed to create more jobs via maintenance projects, was delayed.

He admitted that some parts of the government's implementation of the stimulus package worth Bt324.47 billion are slower than expected by two to three months. But, there was no need to introduce other measures at the moment as the package was sufficient.

"Has the stimulus package produced any effect? My answer is not yet and it is slower than what I expected," he said.

Pridiyathorn explained that job-creation measures worth Bt23 billion were delayed because the projects identification process was finished only at the end of October. He said that of the total, Bt8-billion leftover budget was yet to be approved by the Budget Bureau and Bt15 billion from the "Strengthening Thailand Project" had still not gone to the Cabinet for approval before it could be disbursed.

"Not even one baht have been disbursed and no contract has been signed, but it is okay. I will make sure that it will be out by December and that would be even better, as the rice farmers will be done with their harvesting period and there will be more workers to work on maintenance projects," he said.

Pridiyathorn explained further that there was also delay in the investment budget that was left over from the fiscal 2013-14 budget worth Bt149 billion, of which only Bt14 billion has been used since the acceleration.

But he expected that the leftover budget and the new investment budget from the 2015 fiscal budget, worth Bt129 billion, would be implemented by December and its effect would be more apparent in the first quarter of next year.

"Next year, the country will definitely grow by more than 4 per cent when the effects from the stimulus package will

start to show in the first quarter of next year and government spending will be in full force starting new year," he stressed.

The Deputy Prime Minister also insisted that the stimulus measures were sufficient because they were aimed at creating jobs. In the meantime, the direct subsidy policy, worth Bt40 billion, currently being provided to rice farmers was the best way to stimulate the grassroots economy, he said, adding the policy has capital limits and it guarantees that the money will find its way into the farmers' bank accounts.

According to the Ministry of Finance, about Bt2.22 billion has already been paid to 184,057 rice farmers in 57 provinces as of November 5.

Source: http://www.nationmultimedia.com/business/Stimulus-package-delayed-Pridiyathorn-30247178.html


-- The Nation 2014-11-07

[JOC]

"Returning happiness to the people". Delayed?? Who would have thought!!

[NongKhaiKid]

Has the money ' disappeared ' ?

[Thai at Heart]

What a <deleted> mess

They have unspent bits of budget sitting around with no cabinet to decide what to do. But its OK. We will wait ti December so the farmers will have finished harvest so there will be labour.

And the nonpopulist version of divvying up.money to farmers is now "the best way to stimulate the economy".....


Meanwhile. Over to maria bartiromo where the USD continues to rally....

What kind of comic commentary is this article?

Edited November 8, 2014 by metisdead

[Boxclever]

"Sorry Herr General, we've stolen too much this year, non left for the people!"

[Prbkk]

Why does he play these silly games? Just a few weeks ago he was still talking up growth prospects and everyone knew the figures were nonsense. All he had to do then was do what every incoming govt in the world does: blame the outgoing govt for the "inherited fiscal disaster". Happening in Australia even 12 months after the election, will be very evident now the US mid-terms are over, it's SOP.

They can't be blamed for this lousy economy...yet..But they can be blamed for creating false expectations in the face of overwhelming evidence of a very poor economic climate.

[DaddyWarbucks]

Why does he play these silly games? Just a few weeks ago he was still talking up growth prospects and everyone knew the figures were nonsense. All he had to do then was do what every incoming govt in the world does: blame the outgoing govt for the "inherited fiscal disaster". Happening in Australia even 12 months after the election, will be very evident now the US mid-terms are over, it's SOP.

They can't be blamed for this lousy economy...yet..But they can be blamed for creating false expectations in the face of overwhelming evidence of a very poor economic climate.

Pridiyathorn Devakula is doing his best in a difficult situation. At least he has integrity... something conspicuously lacking in his predecessors.

[bikerbri]

Thai stocks overvalued and manipulated, the Thai Baht overvalued and manipulated, exports down, stimulus package delayed, tourism down,energy prices due to rise.marshal law still in force,corruption rife and endemic ,the poor getting poorer,the rich getting richer,2.2 trillion infrastructure plan looking for funds,welcome to Thailand,the land of smiles and short term thinking,which is beginning to show dividends.........or so we are told.

[jesimps]

Why does he play these silly games? Just a few weeks ago he was still talking up growth prospects and everyone knew the figures were nonsense. All he had to do then was do what every incoming govt in the world does: blame the outgoing govt for the "inherited fiscal disaster". Happening in Australia even 12 months after the election, will be very evident now the US mid-terms are over, it's SOP.

They can't be blamed for this lousy economy...yet..But they can be blamed for creating false expectations in the face of overwhelming evidence of a very poor economic climate.

Pridiyathorn Devakula is doing his best in a difficult situation. At least he has integrity... something conspicuously lacking in his predecessors.

Lacking in his predecessors' predecessors too, but what's it got to do with the delayed stimulus package?

[Thai at Heart]

Why does he play these silly games? Just a few weeks ago he was still talking up growth prospects and everyone knew the figures were nonsense. All he had to do then was do what every incoming govt in the world does: blame the outgoing govt for the "inherited fiscal disaster". Happening in Australia even 12 months after the election, will be very evident now the US mid-terms are over, it's SOP.

They can't be blamed for this lousy economy...yet..But they can be blamed for creating false expectations in the face of overwhelming evidence of a very poor economic climate.

Pridiyathorn Devakula is doing his best in a difficult situation. At least he has integrity... something conspicuously lacking in his predecessors.

Didn't he announce currency controls last time and oversee the set plumetting. He is a complete and utter numpty. The last guy told white lies and was basically useless. This guy is just useless.

[englishoak]

What do you expect from a bunch of self appointed soldiers ?

[rubl]

What do you expect from a bunch of self appointed soldiers ?

Under current circumstances I have to refrain from answering

BTW Pridiyathorn, the chap from the OP, is not a soldier

[metisdead]

A post in violation of fair use policy has been removed.

[Robespiere]

Why does he play these silly games? Just a few weeks ago he was still talking up growth prospects and everyone knew the figures were nonsense. All he had to do then was do what every incoming govt in the world does: blame the outgoing govt for the "inherited fiscal disaster". Happening in Australia even 12 months after the election, will be very evident now the US mid-terms are over, it's SOP.

They can't be blamed for this lousy economy...yet..But they can be blamed for creating false expectations in the face of overwhelming evidence of a very poor economic climate.

Pridiyathorn Devakula is doing his best in a difficult situation. At least he has integrity... something conspicuously lacking in his predecessors.

Pridiyathorn is the gift that keeps on giving!

This man is renowned for two things:

1. Introducing capital controls that caused the SET to crash destroying $20 billion of market value in one day.

2. As Bank of Thailand governor he oversaw and then defended the sale of a certain piece of land to a certain Mrs Thaksin Shinawatra.