The Government will focus on key priority sectors where we believe Thailand has unique advantages and untapped potential. The tourism sector, in particular, generates tremendous foreign exchange value-added income, helps globalize Thailand, and has a pervasive impact on income distribution. Critical to the revival of the corporate sector is our continuing commitment to better governance, accountability and transparency. I would like to commend the steps taken by the previous government in this regard, and intend to further strengthen the regulatory framework to better protect the interests of public shareholders. Before turning to longer term initiatives in the government sector, let me say a few words on the appropriateness of fiscal stimulus measures by the Government at this juncture of the economic cycle.
International precedents suggest that recovery from a crisis period is easier in a growing economy.
The economic slowdown in our major export markets has hurt our export performance this year. Therefore, due to a deceleration of external and domestic demand, we believe that counter-cyclical fiscal stimulus is necessary to revive the economy. For this reason, the Government plans to implement a fiscal stimulus package in the next fiscal year to support domestic demand. One undesirable consequence is a possible increase in government debt. However, we believe that this increase in debt is appropriate and sustainable, as long as the fiscal stimulus means productive not wasteful spending and is accompanied by comprehensive economic restructuring.