NLA okays additional Bt190-bn budget

[rooster59]

NLA okays additional Bt190-bn budget

By THE NATION

 

THE NATIONAL Legislative Assembly (NLA) yesterday passed a bill for a Bt190-billion additional budget for fiscal 2017.

 

Finance Minister Apisak Tantivo-rawong said the additional budget would be used to finance projects that need expedition and to stimulate the economy. 

 

The bill passed the NLA with 163 votes after five hours of discussion in three readings. 

 

Full story: http://www.nationmultimedia.com/news/business/EconomyAndTourism/30305121

 

 

 

-- © Copyright The Nation 2017-01-28

[candide]

Only 163 yes votes? There's something rotten....

[Brer Fox]

Presumably this is in addition to the existing deficit so the money will have to be borrowed or printed.

Funding infrastructure projects is not unreasonable if it stimulates the economy. That is presuming that none of it finds it's way into the back pockets of "connected" people. Of the 190 billion baht it should not surprise anyone if 40 billion disappeared in commissions and kickbacks. 

Spending money on submarines and tanks does not stimulate the economy. That just unnecessarily puts the country further into debt. But high ranking military economists wouldn't see it that way. For them it is just food for their egos.

 

[smutcakes]

I thought the rice scheme bankrupted the country? Seems for this Government there are endless pots of money, where the money is going is anyones guess. 

[mtls2005]

3 hours ago, candide said:

Only 163 yes votes? There's something rotten....

 

Probably enough for a quorum, not that "rules" matter; I think they did just re-stock this "Assembly" up to max. of 220?

 

On the plus side, the vote was 163:0.

 

A 30 baht rubber stamp and ink pad would sure save a lot of money.

[Srikcir]

5 hours ago, Brer Fox said:

the 190 billion baht

When added to the 390 billion government debt previously approved unanimously by the NLA (183:0) in 2016 or 580 billion, it surpasses the 60% of GDP for debt ceiling limit cited by Deputy Prime Minister Somkid Jatusripitak just 2 weeks ago.

http://englishnews.thaipbs.or.th/government-approves-deficit-budget-2017-fiscal-year/

 

However, Somkid at that time referenced total government debt to be 450 billion and not 390 billion that might mean that an additional 60 billion in debt was informally (?) added to the FY 2017 budget after NLA had approved it - perhaps for TAT and other "emergency" expenditures. That would bring government debt to about 74% of GDP.

 

Flashback to Prayut's statements made in 2014 after the coup:

"We will not overspend the national budget." 

http://www.thaigov.go.th/index.php/en/download/item/83780-national-council-for-peace-and-order-ncpo-program-bring-back-happiness-to-the-nation.html

and

"He also says his government will maintain financial and monetary discipline, and will not resort to budgetary overspending in order to win support from the public."
http://www.nationmultimedia.com/news/national/aec/30243025

When a government has unfettered access to the treasury, national debt becomes meaningless except to the taxpayers who must bear the burden. And FY 2017 is only 4 months old.

 

[elgordo38]

9 hours ago, rooster59 said:

Finance Minister Apisak Tantivo-rawong said the additional budget would be used to finance projects that need expedition and to stimulate the economy

Submarines, tanks, planes, new? stealth boat, OK will stop here I am stimulated enough already. 

[Tompa]

1 hour ago, Srikcir said:

Pure comedy gold reading this

http://www.thaigov.go.th/index.php/en/download/item/83780-national-council-for-peace-and-order-ncpo-program-bring-back-happiness-to-the-nation.html

 

 

 

[candide]

48 minutes ago, Srikcir said:

When added to the 390 billion government debt previously approved unanimously by the NLA (183:0) in 2016 or 580 billion, it surpasses the 60% of GDP for debt ceiling limit cited by Deputy Prime Minister Somkid Jatusripitak just 2 weeks ago.

http://englishnews.thaipbs.or.th/government-approves-deficit-budget-2017-fiscal-year/

 

However, Somkid at that time referenced total government debt to be 450 billion and not 390 billion that might mean that an additional 60 billion in debt was informally (?) added to the FY 2017 budget after NLA had approved it - perhaps for TAT and other "emergency" expenditures. That would bring government debt to about 74% of GDP.

 

Flashback to Prayut's statements made in 2014 after the coup:

"We will not overspend the national budget." 

http://www.thaigov.go.th/index.php/en/download/item/83780-national-council-for-peace-and-order-ncpo-program-bring-back-happiness-to-the-nation.html

and

"He also says his government will maintain financial and monetary discipline, and will not resort to budgetary overspending in order to win support from the public."
http://www.nationmultimedia.com/news/national/aec/30243025

When a government has unfettered access to the treasury, national debt becomes meaningless except to the taxpayers who must bear the burden. And FY 2017 is only 4 months old.

 

From 2009 to 2015 the debt to GDP ratio remained relatively stable in the 40-45% range. For 2016 it is estimated at around 50%. If it raises to 60% or even 74% as the figures suggest (provided the increase in expenses is not compensated by an increase in tax revenues), it is quite worrying.

[Srikcir]

22 minutes ago, candide said:

is not compensated by an increase in tax revenues

In 2015 and 2016 the government implemented substantial tax breaks and lowered corporate tax rates, has delayed property tax increases, and appears to have "punted" on estate taxes. While GDP is showing slight increases in 2016 its economic benefits in terms of higher tax revenues are being diluted by increased household debt (incentivized by government subsidies), higher inflation and unemployment, and flight of BOTH foreign and domestic investment.

Maybe the good news is that on the cusp of an econmic collapse the junta might turn the government over to an elected government so the military can blame it for its own economic failures.