Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Thu, 17 Dec 1992 19:29:32 EST
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      TH: Chuan outlines budget

=======================  Forwarded  Message  ===========================
Date: Wed, 16 Dec 92 23:30:01+0700
From: Kamol Hengkietisak <kamol@ipied.tu.ac.th>


PRIME Minister Chuan Leekpai yesterday presented to Parliament a
560,000-million-baht budget for fiscal 1993 and said it would meet the
Government's vital policy to distribute income and open opportunities
for people in rural areas.

He told Parliament that the budget was aimed to spur economic,
political and social development, upgrade education and improve health
care.

The Prime Minister asked to be excused for presenting the Budget Bill
late and cited the several changes of governments this year and other
impediments to his administration as reasons for the delay.

Mr Chuan said he expected the economy to grow at a rate of 7.5 per
cent next year and although the figure is lower compared to previous
years it was much higher than the 1.1 per cent rate at which the world
economy is projected to grow and well above the average 5.3 per cent
growth rate predicted for other ASEAN countries.

The inflation rate, he said, has gradually reduced to around 4.2 per
cent this year.

Because of the higher value of exports as compared to imports, he
expected that the current account deficit would not exceed 170,000
million baht or 6.4 per cent of the gross national product compared to
193,000 million baht current account deficit or 8.1 per cent of the
GNP registered last year.

On the monetary side, the Prime Minister said, there was better
balance this year between credits and savings of commercial banks
which rose at a rate of 19 and 17 per cent respectively. With the
continued inflow of big foreign investment and capital, liquidity was
in good shape leading to substantial cuts in domestic interest rates.

The reserve fund stood at over $21,000 million -- equivalent to six
months of imports. Foreign debt repayment of both private and
government sectors remained at 10.9 per cent of the gross revenue from
exports and services.

The Prime Minister said his government would promote stable economic
growth and ensure that financial institutions adopt measures to
contribute towards national development.

He pledged to ease controls to make the monetary system more flexible
and improve the performance of financial institutions.

On fiscal policy, Mr Chuan said the country has been registering a
cash surplus for the past five years. This year the figure amounted to
85,000 million baht or 3.2 per cent of the GNP. This, he added, caused
the reserve fund to increase to 208,465 million baht at the end of
October with the net reserve fund totalling 59,700 million baht.

The Prime Minister said his government would restructure several taxes
to make them more conducive to economic growth. Tax collection will be
improved while the tax base will be spread out, he added.

He said the Government hopes to collect 571,710 million baht in taxes
next year -- an increase of 9.5 per cent compared to the gross revenue
of the 1992 fiscal year. After the deduction of export tax and VAT
redemption, the Government still expects to earn 534,400 million baht
in net revenue, he said, adding that there is still a deficit of
25,600 million baht which will be secured in the form of loans to meet
the expenditure.

For maintenance of security the Government has allocated 89,060
million baht compared to 77,360 million baht allocated in 1992. This
includes 3,270 million baht for housing and other amenities for
military personnel.

Mr Chuan told Parliament his government had set aside 50,810 million
baht for the agricultural sector. The budget will be used, among other
things, to accelerate the land reform programme and issuance of land
title deeds, development of water resources, assist farmers to raise
productivity and in marketing, and extend more credit to farmers
through the Bank of Agriculture and Agricultural Cooperatives.

On the industrial side, the Government has set aside 2,030 million
baht to facilitate the expansion of industries to rural areas and
improve labour skills.

On commerce, Mr Chuan said his government attached great importance to
the ASEAN Free Trade Area (AFTA) concept and the General Agreement on
Tariffs and Trade (GATT), to promote Thai exports and to explore new
markets. This includes the opening of two more commercial centres and
six commercial advisory offices abroad.

On communication, the Prime Minister said the Government would
accelerate the development of inter-provincial highways. All main
highways to the regions will be expanded to four lanes by 1994. The
traffic master plan for big cities will be adjusted and a concerted
campaign launched to educate motorists in disciplined driving.

The Government hopes to promote Thailand as a regional hub for tourism
through publicity campaigns in 27 countries and adopt measures to
improve the safety of tourists and conserve the environment of tourist
spots.

On management of natural resources, the Prime Minister said, his
government attached great importance to conservation, rehabilitation
and preventing the destruction of natural resources. This, he said,
includes reforestation covering 1.4 million rai of degraded forests,
rehabilitation of watershed areas, maintaining community forests and
supporting participation by non-governmental organisations and
villagers in the protection of forests.

The Government has allocated the largest budget for education,
amounting to 109,870 million baht representing an increase of 26.9 per
cent, said Mr Chuan.

He said 1.8 million pre-school children will have an opportunity to
receive primary education which will be extended from 6 to 9 years.
The lunch programme for poor students will also be expanded.
Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU