POLITICS
ANUCHA CHAROENPO
The Democrat party has raised concerns about the government's 1.83-trillion-baht budget for the next fiscal year. The opposition argues that the budget has been compiled with too much optimism. The Democrats also expressed concern that the proposed budget would force the public to inherit huge debts.
Opposition leader Abhisit Vejjajiva said in the 2009 fiscal budget debate in parliament yesterday that Prime Minister Samak Sundaravej painted a rosy picture of the country's economic outlook.
The prime minister told the House that the budget was based on predicted economic growth of 5.5% next year and a 3.5% average inflation rate.
He also said the government has come up with plans to seek domestic and overseas loans to spend in its mega-public infrastructure projects to meet the economic growth target.
But Mr Abhisit said the figures were too optimistic, as analysts from several financial institutes predicted that inflation next year would exceed 7%, while the commerce minister announced inflation had hit 7.6% last month.
''I don't know what the government is basing this 3.5% inflation figure on,'' said Mr Abhisit.
''If it includes petrol, how much is it on the global market?'
Mr Abhisit challenged Finance Minister Surapong Suebwonglee to clarify the matter and give public assurances as to how the government intends to make inflation drop to 3.5% next year.
Mr Abhisit said he was certain the government drafted the budget while fluctuations were occurring in the economy, leading it to take a budget deficit approach to stimulus.
''But the government has run the country for four months and economic problems happening right now have caused drastic change,'' he said.
''I'm sure most economists would worry about the high inflation rate more than economic stimulus.''
The opposition leader said the government should not pay too much attention to the economic growth figure. More importantly, the government should draw effective backup plans to deal with the rising cost of living.
Mr Abhisit said he wondered why the government only set aside 242.6 billion baht to help people affected by the economic downturn, as the budget was too small to deal with the problem.
''The works out at only four baht per head,'' he said. ''How does this work?''
Democrat MP for Bangkok Korn Chatikavanij said the government's estimates for GDP growth and inflation next year were wrong. The projected growth rate of 5.5% could be achieved only if prices of fuel, raw materials and food dropped drastically.
Mr Surapong said the government will do everything it can to prevent high inflation. He said the 3.5% percentage inflation was a median figure that could well be possible.
The fiscal budget debate will be held for three days, ending tomorrow.
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