The Thailand Development Research Institute has proposed that the Yingluck Shinawatra administration focus on improving productivity in the service and manufacturing sectors over the next decade to boost economic growth and avert public debt crisis.
Somchai Jitsuchon, a senior economist, said public debt will increase rapidly as the government has implemented many large-budget policies; namely, rice pledging, infrastructure investment, flood prevention and reduction of corporate income tax.
Economic growth should reach 6% if the country wants to keep public debt below 60%. The rice pledging policy will weigh heavily on the fiscal burden, considering the cost from the first year of operation in 2012 could reach 300 billion baht and the ruling Pheu Thai Party holds it as one of its signature policies.
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