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Dear
friends,
With
little
government
interference,
Thailand’s
economy
has
purred
along,
with
growth
in 2006
seemingly
spurred
by
healthy
beginnings
in the
first
quarter
of the
year.
The
current
6%
growth
rate is
comparable
to that
of the
same
quarter
last
year
owing to
positive
export
and
tourism
growth.Over
this
same
period,There
has also
been
high
economic
growth
worldwide.
However,
as
government
income
collection
for May
2006 is
3,349
million
baht
below
target,
a
dangerous
signal
of
economic
slowdown
is shown
for the
second
half of
2006,
and
failure
to reach
targeted
income
collection
is a
real
risk.
On the
political
horizon,
looming
scenes
of
continued
strong
conflict
hint to
the
possibility
of no
election
at all
on
October
15,
2006,
which
would
result
in
delayed
Budget
consideration
for
2007,
and
continued
economic
slowdown
until
the
beginning
of 2007
as
investment
funds
cannot
be
withdrawn
from
2007’s
budget
in the
last
quarter
of 2006.
A
Financial
policy
of
adverse
balance
seems
attractive,
to
stretch
an
overlapped
investment
fund
from the
end of
2006 to
the
beginning
of 2007
and
beyond.
But, the
present
government’s
caretaker
role
precludes
this
suggestion,
as it
would be
a rude
obligation
on any
incoming
government.
Instead
then,
the
caretaker
government
should
at this
time
improve
the
efficiency
and
effectiveness
of
budget
provision,
conducting
mutually
compatible
finance
policies
within
the
larger
financial
affairs
arena,
and
preparatory
to the
operation
of
projects
of
long-lasting
benefit
to the
country.
Ensure
Efficient
Budget
Expenditure
There
are
fears
that the
government
will not
spend
money in
the most
efficient
manner,
especially
so close
to a new
election.
The TRT
government
has
often
spent
budget
for vote
gain by
publicly
promoting
their
own work
policies,
but this
is not
an
efficient
way to
dispense
the
budget.
So, the
government
should
spend
its
publicity
budget
on
useful
projects,
especially
those
supporting
export,
tourism,
and
investment,
focusing
on
petrol-producing
countries
and
those
with
high
economic
growth.
If
government
publicity
expenditure
is
sought,
it
should
be the
publicity
on how
to save
energy,
which
would be
more
useful.
Allocate
Budget
Correctly
When it
comes to
budget
arrangements,
the
behaviour
of this
government
is not
group-targeted.
Government
policies
mostly
rely on
scattered
budgets,
spreading
the same
policies
and
budgets
equally
on every
group of
people
across
every
area of
the
country,
even
though
each
group
and each
area
will
have
different
necessities
and
requirements.
Therefore,
the
government
should
not
spend
budget
wastefully,
in
particular
distributing
budget
according
to
popular
policies
or oil
price
support.
But,
specific
help
should
be given
to
target
groups,
especially
the poor
and
low-income
people
who are
seriously
affected
by oil
price
increase.
Have No
Conflicting
Signals
with the
Bank of
Thailand
Close
coordination
with the
Bank of
Thailand
in
setting
finance
policies
can do
this.
Though
it may
disagree
with
Bank of
Thailand
policies,
the
government
should
send no
such
signals
of
conflict;
or else
finance
policies
will be
conducted
ineffectively.
In
addition,
the
government
should
refrain
from
expressing
opinions
that
attack
Bank of
Thailand
policies,
but
should
respect
the
freedom
of the
Bank.
Value
Long-term
Project
Operations
Especially
to value
projects
that
reduce
dependence
on
overseas
energy
sources,
for
example,
adjusting
production
structure,
developing
production
technology,
and
labor
productivity.
Transportation
structural
adjustments
include
development
of the
mass
transportation
system,
logistics
system
development,
the
development
of the
communication
infrastructure,
and
structural
adjustment
to the
use of
energy
by
developing
compensatory
energy
sources
and
supporting
the
development
of
energy
saving
technology.
As for
its Mega
Projects,
the
government
should
study
carefully
and let
the
people
participate
more.
Operational
priorities
can be
included
here,
having
these
arranged
and
operated
according
to
academic
principles,
with
project
details
clearly
and
transparently
then set
in
place,
and
removing
the
Prime
Minister
and
politicians
from
presiding
on the
committee
boards
of those
who
consider
bids and
contracts.
Most
importantly,
policies
must be
clarified
as to
what
they
will do
and when
and how.
Project
completion
dates
must
also be
clear to
ensure
that
people
who
doubt
the
government’s
word,
will
still
really
do their
own
part,
even as
these
Mega
Projects
have
been
changed
many
times.
Though
there
are
limits
to the
caretaker
government’s
financial
policy
usage,
the
government
can
adjust
its
efficiency
and
effectiveness
to
increase
the
economic
benefits.
Moreover,
the
government
has more
tools
than
mere
financial
expenditure
at its
disposal.
The best
tool is
to
ensure
that
people
are sent
right
economic
signals,
and to
set
clear
and
stable
policies
in
place. |
