Cabinet nod for Bt300-bn deficit in 2013

That represents an improvement of 25 per cent from the Bt400-billion budget deficit in the current fiscal year.

Thitima Chaisang, acting government spokeswoman, said the fiscal 2013 expenditures, which account for 19.1 per cent of gross domestic product, were up by Bt55.2 billion or 0.8 per cent, while revenues were up by Bt120 billion or 0.6.1 per cent.

Fixed expenditures will rise by 2.4 per cent to Bt1.88 billion, 78.5 per cent of the total budget. The investment budget of Bt467 billion, 19 per cent of the total, shows an increase of Bt28.44 billion or 6.5 per cent.

In the year, Bt48.64 billion – 2 per cent – of the budget is earmarked for debt repayment, up by Bt1.78 billion, 3.8 per cent, from the previous year.

The 2013 budget assumes that the Constitution Court would rule in favour of the government’s executive decree to let the central bank handle the debt of the Financial Institutions Development Fund.

Since the burden has been removed from the government’s books, the government need not allocate a budget for principal and interest payments. In fiscal 2012, Bt68.43 billion was set aside for servicing the FIDF debt.

The 2013 budget also assumes that the economy would expand 8.4 per cent, by Bt971 billion, to Bt12.54 trillion.

The Cabinet also approved a US$15 million or Bt450 million contribution to Asean’s $485.2-million infrastructure fund.

Thailand, the Philippines and Singapore will each give $15 million, while Brunei and Vietnam will each grant $10 million, Indonesia $100 million and Malaysia $150 million, she added.