16.05.09 Finance minister reiterates need for loans to spur economy
Source: TNA
BANGKOK, May 16 (TNA) – Finance Minister Korn Chatikavanij on Friday
reiterated the government’s need to seek 800 billion baht of loans
locally to help stimulate the country’s economy.
Delivering a lecture on “Management of National Economy Amidst
Global Economic Recession” to senior government officials from various
business units, he said he would seek a first reading of the proposed
issuance of the law governing local borrowing of 800 billion baht
through executive decree and the new Act in parliament on Monday.
He reaffirmed the loans remained within the fiscal discipline
framework, acknowledging that they would increase public debt to 60 per
cent of gross domestic product (GDP), but insisted the amount is still
manageable. He also conceded that all parties are worried about the
increased debt burden.
“The government managed to earn tax revenue of only 1.3 trillion
baht after the economy reacted to the crisis. The amount is enough only
for payment of the monthly salary of government officials,” he said.
Unless the government sought loans for investment in various
sectors, he said, the economy would experience difficulties, the number
of jobless persons would increase significantly and the debt burden
would be transferred to the household sector. More importantly, social
problems would be manifest.
Because of this, he said, the government would need to take the debt
burden and invest through various mega projects, which could create
1.5-2 million jobs.
He projected GDP would grow 2 per cent annually during the
three-year period of the government’s 2nd phase economic stimulus
package. (TNA)
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