Thai govt to speed up budget spending to boost growth

[webfact]

STIMULUS MEASURES
Govt to speed up budget spending to boost growth
Erich Parpart,
Sasithorn Ongdee
The Nation

Sommai expects to meet disbursement target by october; prepare for 'new normal', group warns

BANGKOK: -- The government will accelerate disbursement of the state investment budget and implement other stimulus measures to boost the country's economic growth rate to 3-3.2 per cent this year, according to Finance Minister Sommai Phasee.

So far, only 53 per cent of the Bt449-billion state investment budget for fiscal 2015 ending this September has been disbursed.

Sommai, who yesterday chaired a committee tasked with economic stimulus and following up on national investment projects, said the body was set up by Prime Minister Prayut Chan-o-cha on July 14 after growing criticism his military-led regime's handling of economic affairs.

Earlier, the embattled finance minister was less optimistic, saying growth of gross domestic product could fall below 3 per cent this year on a significant 4.84-per-cent drop in exports in the first six months.

To revitalise the sluggish economy, Sommai said state-budget disbursement would be speeded up in the remaining two months of fiscal 2015 and in fiscal 2016. But he noted that a further cut in the Bank of Thailand's policy interest rate would not be helpful at this stage in terms of boosting economic activities.

Sommai said his committee was responsible for compiling all major government investment schemes and stimulus efforts so that the government could help speed up implementation. "As the steering committee, we will also inform the prime minister every month of the progress of these projects. The first update will go to the next Cabinet meeting on August 4," he said.

He said the target of 96-per-cent budget disbursement should be met in October. As of July 24, around Bt2.04 trillion had been disbursed out of the total Bt2.575 billion.

Around Bt236 billion or 53 per cent of the total Bt449-billion state investment budget has been disbursed so far.

The government will also push for faster implementation of infrastructure schemes, which are worth a combined Bt1.95 trillion over the next two years. In addition, Bt920 billion worth of off-budget loans and ongoing urgent stimulus measures to help farmers and low-income earners who have been affected by drought, and job-creation projects worth a combined Bt157 billion, will be accelerated.

The investments highlighted under the Transport Ministry's infrastructure projects are the two high-speed dual-track railway projects worth Bt741 billion, and six standard-gauge dual-track rail projects covering 887 kilometres worth Bt127 billion.

In addition, urgent loans for development of water management and road transport are still ongoing. Contracts worth Bt23.915 billion have been signed and the plan is to disburse around Bt30 billion in December, while contracts for the remaining projects worth Bt7.605 are expected to be signed by August 14, he said.

Meanwhile, the Thailand Future Foundation has suggested that the Kingdom shift its export focus to the Greater Mekong Subregion rather than old trade counterparts like the European Union countries and Japan to brace for what it calls the "new normal".

The foundation, which was set up by a group of leading businesspeople over the past few years and has former finance and commerce minister Somkid Jatusripitak - also a member of the junta-backed government on economic affairs - as a chairman of the board, yesterday revealed its latest study on "Thailand's new normal".

Sethaput Suthiwart Narueput, director and secretary of the foundation, said the "new normal", which was defined as a new paradigm of the lower pace of economic growth, meant that Thailand was likely to experience annual GDP growth of not more than 3 per cent from now on. This phenomenon is just like what is happening in the global economy, especially in the United States, Japan and China.

Source: http://www.nationmultimedia.com/business/Govt-to-speed-up-budget-spending-to-boost-growth-30265545.html


-- The Nation 2015-07-30

[timewilltell]

Thailand is heading into problems. It has only one bright light which will be with the rapid weakening of the Thai baht over the next several years as interest rates rise in the Western 'safer' economies result in repatriation of foreign currency which will greatly help exporters.

Unless there is a change in mindset Thailand is not going to attract huge swathes of foreign investment other than the infrastructure schemes already in the pipeline and similar new schemes. In the private sector Thailand is a terrible place to invest with anti-foreign laws and general sentiment, forced Thai majority control of businesses and a legal system that prevents safe business through a corrupt and xenophobic police force, lawyers who compete on how many and how much they have scammed foreigners by their tactics of intentionally misfiled claims, intentional lapses of memory to file applications and appeals and abuse gf the language barrier. In a system of law that is infantile in compilation, retarded in the process of continued amendment rigid to timetable that lawyers can use to cheat and inflexible to administrative errors. Couple that with many ill educated and inevitably some racist and corrupt judges and business has no foundation of law to do business.

Thailand does not have a foundation of well educated workforce nor one will much in the way of advanced skillsets so the workforce is becoming uncompetitive with the new minimum wage compared to like skilled workforces. With little to tempt foreign investment and a rather poor base of local competitive businesses it is hard to see how Thailand will manage. Perhaps the egocentric, xenophobic attitudes will gradually temper when the economic screws start to tighten and any hardships will be largely self created.

[johng]

Perhaps the egocentric, xenophobic attitudes will gradually temper when the economic screws start to tighten and any hardships will be largely self created.

No they will just put prices up and blame foreigners for not investing ! :-(

Edited July 30, 2015 by johng

[Red Queen]

Thailand is heading into problems. It has only one bright light which will be with the rapid weakening of the Thai baht over the next several years as interest rates rise in the Western 'safer' economies result in repatriation of foreign currency which will greatly help exporters.

Unless there is a change in mindset Thailand is not going to attract huge swathes of foreign investment other than the infrastructure schemes already in the pipeline and similar new schemes. In the private sector Thailand is a terrible place to invest with anti-foreign laws and general sentiment, forced Thai majority control of businesses and a legal system that prevents safe business through a corrupt and xenophobic police force, lawyers who compete on how many and how much they have scammed foreigners by their tactics of intentionally misfiled claims, intentional lapses of memory to file applications and appeals and abuse gf the language barrier. In a system of law that is infantile in compilation, retarded in the process of continued amendment rigid to timetable that lawyers can use to cheat and inflexible to administrative errors. Couple that with many ill educated and inevitably some racist and corrupt judges and business has no foundation of law to do business.

Thailand does not have a foundation of well educated workforce nor one will much in the way of advanced skillsets so the workforce is becoming uncompetitive with the new minimum wage compared to like skilled workforces. With little to tempt foreign investment and a rather poor base of local competitive businesses it is hard to see how Thailand will manage. Perhaps the egocentric, xenophobic attitudes will gradually temper when the economic screws start to tighten and any hardships will be largely self created.

All those observationas coincide pretty much exactly with my own. Well said.

Thais do talk a good game though... when they think they understand the game that is, and until they get caught out. Must be a few points for that...

I think the root of the problem is that Prayuth thought people who wanted preference and promotion and who flattered him were being sincere and were well-placed to judge. He seems to have believed it when they said he was supremely talented and could do anything he set his mind to.

And what Thailand is now experiencing is what happens when a fool believes the flattery of bigger fools who want something from him. The legend of King Canute was much the same thing but (I believe) that worthy King also believed the flatterers and re-wrote history when he ended up looking foolsh.

Oh. Much like Prayuth is doing now.

Edited July 30, 2015 by Red Queen

[halloween]

All those observationas coincide pretty much exactly with my own. Well said.

Thais do talk a good game though... when they think they understand the game that is, and until they get caught out. Must be a few points for that...

I think the root of the problem is that Prayuth thought people who wanted preference and promotion and who flattered him were being sincere and were well-placed to judge. He seems to have believed it when they said he was supremely talented and could do anything he set his mind to.

And what Thailand is now experiencing is what happens when a fool believes the flattery of bigger fools who want something from him. The legend of King Canute was much the same thing but (I believe) that worthy King also believed the flatterers and re-wrote history when he ended up looking foolsh.

Oh. Much like Prayuth is doing now.

So the wise old ruler was actually an egotistic idiot, with a good PR team. Any thoughts on how "the world's smartest businessman" will spin the rice scam?

[DDuval]

Thailand, pure and simple is overpriced. I sell things online and can buy things in India 30% cheaper than Thailand. Why???

Was in Cowboy the other day and got quoted 440 Baht (1 Lady drink and 1 Beer) Why??

The reality is the USD should be 1 to 40 THB and GBP should be 1 to 60 THB. If this dosen't happen Thailand as a 2nd world country is simply over priced and will eventually destroy what export and tourists it has left (Albetit for the Low End China Tourists and sex Tourists like me ) :-)

Edited July 30, 2015 by DDuval

[Red Queen]

All those observationas coincide pretty much exactly with my own. Well said.

Thais do talk a good game though... when they think they understand the game that is, and until they get caught out. Must be a few points for that...

I think the root of the problem is that Prayuth thought people who wanted preference and promotion and who flattered him were being sincere and were well-placed to judge. He seems to have believed it when they said he was supremely talented and could do anything he set his mind to.

And what Thailand is now experiencing is what happens when a fool believes the flattery of bigger fools who want something from him. The legend of King Canute was much the same thing but (I believe) that worthy King also believed the flatterers and re-wrote history when he ended up looking foolsh.

Oh. Much like Prayuth is doing now.

So the wise old ruler was actually an egotistic idiot, with a good PR team. Any thoughts on how "the world's smartest businessman" will spin the rice scam?

I don't normally feed trolls, but it does seem like you don't really understand history. Especially British history but I don't think many Aussies know a lot about British history so don't feel bad, hatred of Britain is a common hangup among our antipodean friends (that means 'on the other side of the world', sorry - it was a long word).

I really cant comment on your next paragraph, I insist on at least a little rationality sense among people I exchange view with and I'm afraid you don't qualify, mot this time anyway.

Let me buy you a beer... least I can do.

Edited July 30, 2015 by Red Queen

[halloween]

All those observationas coincide pretty much exactly with my own. Well said.

Thais do talk a good game though... when they think they understand the game that is, and until they get caught out. Must be a few points for that...

I think the root of the problem is that Prayuth thought people who wanted preference and promotion and who flattered him were being sincere and were well-placed to judge. He seems to have believed it when they said he was supremely talented and could do anything he set his mind to.

And what Thailand is now experiencing is what happens when a fool believes the flattery of bigger fools who want something from him. The legend of King Canute was much the same thing but (I believe) that worthy King also believed the flatterers and re-wrote history when he ended up looking foolsh.

Oh. Much like Prayuth is doing now.

So the wise old ruler was actually an egotistic idiot, with a good PR team. Any thoughts on how "the world's smartest businessman" will spin the rice scam?

I don't normally feed trolls, but it does seem like you don't really understand history. Especially British history but I don't think many Aussies know a lot about British history so don't feel bad, hatred of Britain is a common hangup among our antipodean friends (that means 'on the other side of the world', sorry - it was a long word).

I really cant comment on your next paragraph, I insist on at least a little rationality sense among people I exchange view with and I'm afraid you don't qualify, mot this time anyway.

Let me buy you a beer... least I can do.

Seems I know enough about English history to believe that one of it's "the Great'" kings wasn't a fool despite your "belief." https://en.wikipedia.org/wiki/Cnut_the_Great.

But hey, why argue your point when you can use insults instead?

Edited July 30, 2015 by halloween

[quandow]

Thailand, pure and simple is overpriced. I sell things online and can buy things in India 30% cheaper than Thailand. Why???

Was in Cowboy the other day and got quoted 440 Baht (1 Lady drink and 1 Beer) Why??

From what I've seen, when hard times hit Thailand, instead of lowering prices to promote healthy competition, they RAISE prices.

Again I am reminded of how I could go out for a night with ฿5,000 in my pocket, have a nice meal, get laid, and drink until the sun came up.

฿440 for a beer and a Lady Drink? Mae ow, kahp!

[Mudcrab]

All those observationas coincide pretty much exactly with my own. Well said.

Thais do talk a good game though... when they think they understand the game that is, and until they get caught out. Must be a few points for that...

I think the root of the problem is that Prayuth thought people who wanted preference and promotion and who flattered him were being sincere and were well-placed to judge. He seems to have believed it when they said he was supremely talented and could do anything he set his mind to.

And what Thailand is now experiencing is what happens when a fool believes the flattery of bigger fools who want something from him. The legend of King Canute was much the same thing but (I believe) that worthy King also believed the flatterers and re-wrote history when he ended up looking foolsh.

Oh. Much like Prayuth is doing now.

So the wise old ruler was actually an egotistic idiot, with a good PR team. Any thoughts on how "the world's smartest businessman" will spin the rice scam?

I don't normally feed trolls, but it does seem like you don't really understand history. Especially British history but I don't think many Aussies know a lot about British history so don't feel bad, hatred of Britain is a common hangup among our antipodean friends (that means 'on the other side of the world', sorry - it was a long word).

I really cant comment on your next paragraph, I insist on at least a little rationality sense among people I exchange view with and I'm afraid you don't qualify, mot this time anyway.

Let me buy you a beer... least I can do.

Seems I know enough about English history to believe that one of it's "the Great'" kings wasn't a fool despite your "belief." https://en.wikipedia.org/wiki/Cnut_the_Great.

But hey, why argue your point when you can use insults instead?

Don't waste your breath mate, he/sh/it is most likely a recycled Mr T lover poster ,possibly suspended under the old poster name...the name Red and Queen should give a clue...about a couple of things.

[tukkytuktuk]

Bloomberg report blames the coup for Thailand's economic woes. http://www.bloomberg.com/news/articles/2015-07-29/post-coup-thailand-sees-economic-slump-putting-pressure-on-junta

[Red Queen]

Bloomberg report blames the coup for Thailand's economic woes. http://www.bloomberg.com/news/articles/2015-07-29/post-coup-thailand-sees-economic-slump-putting-pressure-on-junta

Not an expert but that seems more likely than drought / global slowdown / Thaksin / Yingluck / black magic and whatever else they come up with to try and persuade the plebs that they're competent at running the country *and* digging latrines.

Colour me a sceptic.

[Srikcir]

Finance Minister Sommai makes it terribly clear that the government has indeed DELAYED substantial investment in Thailand's infrastructure. With less than two months remaining in the fiscal year 2015 only 53% of the budget has been disbursed!

But what is more ominious is the government will disburse another 43% before the end of the fiscal year (September 31, 2015) or about Bt190 billion! This means government contracts need to be announced, bid and awared in less than two months. This gold rush opens the entire process to potential abuse of power and dereliction of duty.

But of course the Junta is immune to any criminal or impeachable conduct.

[Rancid]

Deficit spending is a short term fix for low growth, a fix that usually sees the current mob get results but then pass the then bigger problem onto to those that follow them.

When the economic SHTF countries with low debt do much better, high debt countries do badly.

The US is the exception as long as they retain reserve currency, as it enables them to print and freeload on the rest of the world.

Big debts are not a good idea for Thailand as it is getting uglier each day in the world economy.

[phoenixdoglover]

Finance Minister Sommai makes it terribly clear that the government has indeed DELAYED substantial investment in Thailand's infrastructure. With less than two months remaining in the fiscal year 2015 only 53% of the budget has been disbursed!

But what is more ominious is the government will disburse another 43% before the end of the fiscal year (September 31, 2015) or about Bt190 billion! This means government contracts need to be announced, bid and awared in less than two months. This gold rush opens the entire process to potential abuse of power and dereliction of duty.

But of course the Junta is immune to any criminal or impeachable conduct.

Agreed.

Even in a non-corrupt environment there is no good way to rush investment spending to this degree. In Thailand, I would expect various forms of graft to increase for a brief binge.

Meanwhile, the Thailand Future Foundation has suggested that the Kingdom shift its export focus to the Greater Mekong Subregion rather than old trade counterparts like the European Union countries and Japan to brace for what it calls the "new normal".

This "new normal" looks like the ultimate excuse for decisions Thailand is making now. It is rather ominous when taken in the context of the human trafficking issue and the current form of Thai government, a Junta.

In other words, "we will be stuck at 3% annual growth, because we expect the US, Europe and Japan to continue to disagree with us..so to hell with them."

That is a choice. Seems suicidal to me. Perhaps it is all part of the plan; it was looking for a while as if Thailand was developing a middle class. Maybe that was a little too "challenging".

[halloween]

Finance Minister Sommai makes it terribly clear that the government has indeed DELAYED substantial investment in Thailand's infrastructure. With less than two months remaining in the fiscal year 2015 only 53% of the budget has been disbursed!

But what is more ominious is the government will disburse another 43% before the end of the fiscal year (September 31, 2015) or about Bt190 billion! This means government contracts need to be announced, bid and awared in less than two months. This gold rush opens the entire process to potential abuse of power and dereliction of duty.

But of course the Junta is immune to any criminal or impeachable conduct.

Do you have a lack of English comprehension? What part of the word "disbursed" indicates to you that contracts haven't been announced, bid or awarded?

[DDuval]

Thailand, pure and simple is overpriced. I sell things online and can buy things in India 30% cheaper than Thailand. Why???

Was in Cowboy the other day and got quoted 440 Baht (1 Lady drink and 1 Beer) Why??

From what I've seen, when hard times hit Thailand, instead of lowering prices to promote healthy competition, they RAISE prices.

Again I am reminded of how I could go out for a night with ฿5,000 in my pocket, have a nice meal, get laid, and drink until the sun came up.

฿440 for a beer and a Lady Drink? Mae ow, kahp!

5,000 is pushing it especially if you like to get smashed in the process. Myself I need about 8,000 but point taken. In my opinion the nightlife is the only thing I think Thailand is value for money everything else very 2 and 3rd rate.