Finance Minister Apisak Tantivorawong aims to take out a 30-billion-baht budget for farm sector reform, part of the 150-billion-baht supplementary budget for fiscal 2018, within the next six months.
The government's upcoming reform of the farm sector will be done on a mass scale, with plans to cut supply and raise crop prices, he said, adding that the budget will also focus on infrastructure investment for the sector such as silos and warehouses, which will allow farmers to store produce and prevent gluts in the market.
The six-month target is achievable, while the long-term reform -- over 3-4 years -- will be set in the 2019 budget, Mr Apisak said.
Downsizing farming areas, particularly for rice, rubber and oil palm, is a crucial part of the government's agriculture reform plan, but the size of the reduction will be determined by the Agriculture and Cooperatives Ministry.
The cabinet earlier this week approved the supplementary budget of 150 billion baht for this fiscal year, of which 50 billion will be paid back to treasury reserves and the remaining 100 billion will be earmarked to fund the second phase of the government's welfare and subsidy scheme for the poor, farm sector reform and tambon-level development and Village Funds.
To fund the supplementary budget, the state will need to borrow an additional 100 billion baht and bring the fiscal 2018 budget deficit to 550 billion baht. The deficit would be the largest since the military-backed government took power in 2014, almost hitting the ceiling of 20% of annual and extra budget expenditure plus 80% of the budget for debt principal repayment, as set by law.
The government's focus on helping the farm sector and low-income earners is aimed at making the economic recovery more broad-based this year.
The spending details of the second phase of the government's welfare and subsidy scheme for the poor, worth 35 billion baht, will be proposed to the Budget Bureau within the next two weeks.
The second phase includes access to the government's financial sources and non-compulsory education such as training courses to improve career skills, jobs and the four basic needs of living: food, home, clothing and medicine. The government has estimated that the second phase will raise 1 million people past the poverty line out of a total 5 million people living in poverty.
Meanwhile, finance permanent secretary Somchai Sujjapongse said there is a 70-80% probability that the economy grew by 4% last year, above the Finance Ministry's forecast of 3.8%.
Regarding Deputy Prime Minister Somkid Jatusripitak's estimate of 5% growth in the economy this year, Mr Somchai said 5% may be the target, but helping those who are at the bottom rung of the economic ladder to escape poverty is the government's focus for this year.