BANGKOK, 10 August 2015, The Ministry of Finance said it expected 102 billion baht to be injected into the Thai economy in the fourth quarter, as the government ramps up disbursements for various projects including infrastructure investment.
Permanent Secretary of Finance Rangsan Sriworasart revealed that the government’s economic stimulus package for the rest of fiscal 2015 comprises mostly mega-infrastructure investment at 79 billion baht. Public spending also includes short-term economic recovery measures, such as employment campaigns for farmers affected by drought and projects to provide financial assistance to small and medium enterprises. Mr. Rangsan said these programs total 102 billion baht.
The Ministry of Finance, the Fiscal Policy Office, and the Bank of Thailand have recently met on national financial risks over the next 4-5 years. The meeting discussed economic risks from the flagging revenue and the accumulation of investment loans. Both factors are likely to cause public debt per GDP to reach the 60 percent limit by 2021. Officials concluded that Thailand must seek austerity measures in order to reduce the economic risks and generate more income.
The Permanent Secretary said currently, Thailand’s financial situation is considered normal, despite missing the target revenue by 100 billion baht, as the nation’s treasury is enough for disbursements.
