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POLITICAL SHOWDOWN
WICHIT CHANTANUSORNSIRI
The fiscal 2009 budget aims to boost economic growth by increasing funds on infrastructure investment and community development plans, according to Finance Ministry officials.
But sceptics argue that the budget, now under deliberation in Parliament, continues the pork-barrel populist policies initiated by the Thai Rak Thai government and later extended by the current People's Power Party.
Given the legal troubles facing Prime Minister Samak Sundaravej and the PPP, critics suggest the budget represents a last gasp by the government to push its provincial-growth agenda and consolidate its upcountry power base in anticipation of new elections soon.
Sondhi Limthongkul, the media owner-turned-activist leader, has even stated that halting the 2009 budget was one of several demands set by the People's Alliance for Democracy before it considers ending its months-long vigil outside Government House.
The budget, which starts this October, calls for spending of 1.835 trillion baht, equal to 17.9% of gross domestic product. This represents an increase in spending of 10.5% from the current budget.
Revenues under the budget are projected at 1.586 trillion baht, leading to a projected deficit of 249.5 billion, or 2.4% of GDP.
Some 124 billion baht, or 6.8% of the budget, is allocated for community development programmes, including 10.4 billion in supplemental money for village investment funds and 21.1 billion baht for the SML grant programme.
Funding for community marketing initiatives and development schemes to support job training, the One Tambon, One Product programme, ''local wisdom'' initiatives and debt forgiveness for small farmers and the poor also will increase under the new budget.
Benefit programmes and housing initiatives for the poor under the Ua-arthorn programme will receive 4.8 billion baht under the budget. The Ua-arthorn programme, aimed at providing low-income residents with flats and small homes, was suspended under the Surayud Chulanont government amid allegations of corruption and poor transparency.
Other funds will be allocated for infrastructure development, including 4.18 billion baht for land expropriation for constructing several new mass-transit routes in Bangkok.
Ironically, 264 million baht has been allocated for programmes aimed at supporting national reconciliation and democracy in the country.
Kiat Sittheeamorn, a member of the opposition Democrat Party, said many programmes outlined in the new budget deserved greater scrutiny and review.
He pointed to the 60-billion-baht programme to procure 4,000 new NGV-powered buses for use in Bangkok as one example of a procurement deal that raised more questions than it answered.
''The SML programme, for instance, has no details at all on how the money will be spent. The fear is that these funds will only go to support the government's political allies, the same as with the village investment funds,'' Mr Kiat said.
He said key assumptions in the 2009 budget also looked optimistic, particularly estimates of 5.5% annual economic growth and inflation forecasts of 3.5%.
''Oil price volatility and political risk could cause the economy to fall well short of these targets, affecting government tax revenues,'' Mr Kiat said.
''I don't see why the government must rush to pass the budget, particularly considering the current political situation in the country.''
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