Unnecessary to inject more money into system

BANGKOK, Oct 22 (TNA) – Finance Minister Korn Chatikavanij on Wednesday indicated the government need not inject more money into the economic system for 2010 because the expenditure budget and investment amount under the Thai Khem Keng (strong Thailand) scheme are already enough to drive the country’s economy.

He said the 2010 budget amounting to Bt1.7 trillion, when combined with an investment amount of Bt300 billion under the Thai Khem Keng scheme, would reach Bt2 trillion, sufficient to drive the economy.

But whether it would be able to make the economy recover as targeted depends on an efficient injection of money into various investment projects, loan expansion by specialized banks, budget disbursements by state agencies, and the success of the investment projects.

He predicted the country’s gross domestic product (GDP) would shrink 3 per cent this year, but would turn around and grow 3 per cent next year.

Given these factors, he saw no need for the government to inject more money using fiscal policy any longer.

Mr. Korn said he had discussed with the finance ministry’s top officials ways to increase the state revenue. Tax collection agencies have been instructed to find an approach to expand the tax base, which currently stays at only 16 per cent of GDP, he said. (TNA)