Meet on post-flood measures

As an initial move, the government has already decided to cut 10 per cent of each ministry’s budget in the fiscal year that started this month.
Kittiratt, also the commerce minister, said yesterday that the government would need at least Bt80 billion to address the damage from the floods, estimated at more than Bt100 billion, or 1 per cent of gross domestic product, and still counting.
The government will need more measures and seek additional funds. The measures should not break fiscal discipline, which was written into law in 1997.
The government may not be able to provide soft loans to serve every desire, but soft loans are only part of the remedy measures planned for impacted enterprises, he said.
The government will carefully consider whether to borrow from overseas. It cannot limit the period for relief efforts, as the flood crisis is continuing, he added.
Yanyong Phuangrach, permanent secretary of the Commerce Ministry, said reducing the ministry’s infrastructure-development budget by 10 per cent would free up Bt67 million to help flood victims.
However, if the government would like to cut the total budget of the ministry, Bt600 million could be made available, he said.