Budget deficit lower than targeted

BANGKOK, Dec 24 (TNA) – Finance Minister Korn Chatikavanij on Wednesday revealed the budget deficit for 2010 would be lower than 350 billion baht or 3 per cent of the budget amount as targeted earlier since the government’s revenue collection is higher than expected thanks to the continued economic improvement.

It showed the government’s fiscal position would remain sound in 2010 as state measures focused on revitalising people and the society.

He said the ministry was ready in terms of budget and various measures to stimulate the economy. In particular, the ministry is able to bring 400 billion baht of loans sought under the Loan Extension Act if the government needs more money to implement various projects.

However, he conceded the local political rift remained a key risk factor to the economic development.

Mr Korn said the government would step up its efforts to increase people’s income next year through various measures including an extension of measures to reduce low-income earners’ living costs for 3 months and a guarantee of farmers’ revenue. (TNA)