Connect with us

Regional News

10% of fiscal 2020 Budget taken from Thai ministries funds

Samui Times Editor



10% of fiscal 2020 Budget taken from Thai ministries funds | Samui Times
  • follow us in feedly

In a bid to avert Thailand from a virus-fuelled economic recession, the Thai Government has set to apply 10% of the country’s fiscal 2020 budget allocated to each ministry. From there, the money will be put into a central funding pool that will be used to battle against the Covid-19 pandemic as well as rehabilitating the economy.

This plan will be the third round of measures set in place by the Government to cushion the blow of the Covid-19 outbreak.

Deputy PM Somkid Jatusripitak says that the measures will be focused on the people who live in rural areas and to stabilise the Thai financial market.”

The funding pool will be overseen by Thailand’s PM Prayut Chan-o-cha.

The total budget allocated to Thailand’s key ministries amounted to 1.98 trillion baht and includes:

  • The Education Ministry at 368 billion baht
  • The Interior Ministry at 353 billion
  • The Finance Ministry at 249 billion
  • The Defence Ministry at 233 billion
  • The Transport Ministry at 178 billion.

Deputy PM Somkid also say…

“These contributions will be one of two key sources of funding to cope with the pandemic and the revival of the economy. The other is borrowing from domestic financial institutions, the government may issue an executive decree allowing this to be possible.”

“The public debt to GDP ratio is 43%, well below the ceiling of 60% set by the government’s fiscal sustainability framework. This allows the government plenty of room to increase public debt to help the rural sector and stabilise financial markets.”

“The public should not be too worried about the debt because the government’s fiscal and monetary status remains strong, with US$230 billion in foreign reserves. The government doesn’t need to borrow from the IMF and domestic financial institutions are flush with liquidity.”

Finance Minister Uttama Savanayana, the Bank of Thailand governor Veerathai Santiprabhob and executives of the Securities and Exchange Commission, reported yesterday to PM Prayut on the progress made for the government’s plan to rehabilitate the economy, agreeing that the third set of measures needs to be approved soon.

SOURCE: Bangkok Post

Stay updated with Samui Times by following us on Facebook.