Prayut presents 2017 deficit budget to NLA

Prayut presents 2017 deficit budget to NLA

Prime Minister Prayut Chan-o-cha presents the 2017 budget bill to the National Legislative Assembly at the parliament on Thursday. (Photo by Apichart Jinakul)
Prime Minister Prayut Chan-o-cha presents the 2017 budget bill to the National Legislative Assembly at the parliament on Thursday. (Photo by Apichart Jinakul)

Prime Minister Prayut Chan-o-cha presented his government's 2.73 trillion baht budget for fiscal 2017 to the National Legislative Assembly on Thursday, admitting that fast rising costs were limiting projects and will require cuts to the government workforce.

In his three-hour speech to the assembly, Gen Prayut said the budget included deficit spending of 390 billion baht, which was needed to implement national development strategies. They would not affect the country's long-term financial condition or fiscal discipline.

Of the total planned expenditure of 2.73 trillion baht, 1.34 trillion baht was for operational costs, 330.41 billion baht for improvement of management in the government sector, 323.66 billion baht to the enhancement of national competitiveness, 231.89 billion baht to human development, 241.15 billion baht to poverty reduction, 157.15 billion baht to security and foreign affairs, and 110.16 billion baht to water management and sustainable development.

The prime minister said the government was facing more limitations on spending because national expenses were growing faster than revenue and it was difficult to increase taxes.

The government would have to minimise fixed expenses, and this meant scaling down its workforce, he said. Reductions would be made at all ministries without causing trouble for government officials, he said.

Gen Prayut also told the NLA that Thailand had good economic stability and financial status with its treasury balance at 230.23 billion baht on June 3 this year and US$176.10 billion (6.19 trillion baht) of foreign-exchange reserves as of May 27. The foreign-exchange reserve was about three times the total of the country's short-term foreign debt, he said.

The national economy was projected to grow 3-3.5% this year and 3.7-4.2% the next year, compared with 2.8% last year, thanks to global economic recovery, mega infrastructure projects and increasing agricultural production, Gen Prayut said.

The NLA approved the budget bill in principle with 189 votes and three abstentions. A 50-member committee will scrutinise the bill over the next 90 days.

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