Thailand to increase spending to boost economy

Finance Minister Korn Chatikavanij said that Thailand’s new government may increase spending by 80 percent to spur an economy hurt by the global recession and domestic political strife. This additional spending was already approved in November to as much as 180 billion baht ($5.2 billion) for the year ending Sept. 30, from the 100 billion baht that the former government budgeted, said Korn, who was appointed finance minister Dec. 20. The proposed spending will need parliament approval, Korn said. The funds would be in addition to the 1.84 trillion-baht budget for the year that started Oct. 1.

“Additional spending is needed to prevent the economy from worsening further,” Korn said in Bangkok today. “The government also plans urgent measures to mitigate the impact of the economic slowdown on unemployment.”

Even Prime Minister Abhisit Vejjajiva said that one of the Government’s prime concern would be to revive the sinking economy of the country.

The government will announce its policies to the parliament on Dec. 29 and Dec. 30 and may hold a special cabinet meeting to approve the economic stimulus package at the last business day of this year, said Abhisit, Thailand’s third premier in four months.