Finance minister affirms Thai Khem Keng projects still intact

BANGKOK, Feb 10 (TNA) – Finance Minister Korn Chatikavanij on Tuesday affirmed that the government will move forward with its earlier announced investment projects under the Thai Khem Keng (Strong Thailand) scheme without any project changes.

He said capital sources for project construction support are set to come from the state budget, state enterprise revenues, public-private partnerships, offshore loans to buy raw materials for construction, and domestic borrowing of Bt800 billion using executive decrees and acts.

As the economy has begun to recover, he said, tax revenue will increase steadily and is likely to reach Bt1.65 trillion in Fiscal 2011, up Bt300 billion from Bt1.35 trillion in 2010.

Consequently, the government sees a need to reduce spending investment funds secured from loans or off-budget amounts and turn to spend more through the annual budget.

Mr Korn said he thought the construction of many roads linking local vicinities at the sub-district level and with inter-provincial highways under the Dust Free Road Project remained necessary but needed to be adjusted appropriately.

In addition, the government would proceed with implementation of the Bt400billion loan bill as the Cabinet on Tuesday moved to have the Council of State consider whether the Legislative Assembly has power to deliberate details of investment spending on each project under the Thai Khem Keng scheme.

He said it is too early for Thailand to adopt an exit strategy to address the economic problems in ways similar to the policies of Western countries because the Thai economy remains fragile and vulnerable to trade liberalisation and global economic uncertainties. (TNA)