BoT says projected deficit is suitable, will boost economy | Bangkok Post: business

The government's budget deficit of 350 billion baht for fiscal 2012 is suitable for economic needs as it keeps public debt in check, says Prasarn Trairatvorakul, the Bank of Thailand governor.

Compared with the deficit of 420 billion baht in the 2011 budget, the sum allocated for the next fiscal year would give an equal boost to the economy, given that 2010 was when the global economy had yet to recover strongly from the global recession, he said yesterday.

"I think the amount of the fiscal deficit is about right at this point in time," Dr Prasarn said. "It also allows the government to maintain fiscal discipline so that it has bullets to use in times of future need."