Stimulus package on Cabinet table

The Ministry of Finance will propose the economic stimulus package to the cabinet meeting on Tuesday, according to Deputy Prime Minister overseeing local economy Kobsak Sabhavasu.

The deputy premier said the package will include various tax measures and ways to boost real estate businesses to help people with low income.

The package will take effect and benefit the public quickly, if it receives good cooperation from the government and its opposition, Mr Kobsak said.

In addition, Finance Minister Korn Chatikavanij said his ministry will ask the cabinet to consider raising the state budget for 2009 from 100 billion baht to 120 billion baht, aimed at spurring the local economy.

He said the government will then expedite the distribution of the 140-billion-baht budget to different local administrative organisations, so more money would be injected into the economy soon. A budget of 600 billion baht will also be quickly allotted to state enterprises, once it is approved by the cabinet, he added.

To ease the public financial burdens, the minister said banks under the government will be asked to release more credits after bank executives affirmed that they can still release many hundreds of billion baht of credits.

Mr Korn said the Monetary Policy Committee (MPC) has received the government's signal to consider adjusting the interest rate on Wednesday, in an attempt to push the economy forward.
  
Prime Minister Abhisit Vejjajiva, referring to the economic stimulus package, said some of the measures will produce concrete results in February.

On the Finance Ministry's revenue collection, which is 10 per cent lower than targeted, the premier insisted it will not disrupt the government's economic revival plan.