Chamber to propose Bt83-bn Pracha Rath budget
THAILAND’S economic growth next year could be half a percentage point higher than the current estimate of 3.5-4 per cent if the Pracha Rath (State of the People) project allocated an additional budget of about Bt83 billion to stimulate local economies, according to the Thai Chamber of Commerce (TCC).
TCC chairman Vichai Assarasakorn said that as a member of the Pracha Rath steering committee, the chamber would propose more than 1,000 projects worth about Bt83 billion to be implemented next year.
The money would be spent to help develop four key sectors.
A total of Bt32 billion would be allocated for 400 projects in the tourism sector, such as creative tourism and setting up surveillance cameras in tourist destinations.
In the agricultural sector, Bt25 billion would be used to launch more than 400 projects, such as increasing the value of crops, creating fair market competitiveness, building reservoirs and developing irrigation systems.
A total of Bt18.2 billion would be spent on 27 projects to develop logistics systems.
Another Bt7.9 billion would be spent on 116 projects for developing infrastructure and facilitating trade and investment.
Vichai said that under the |chamber’s proposal, the additional budget would be allocated to 18 provincial clusters, with each group getting about Bt5 billion to stimulate the local economy and decentralise development away from Bangkok.
The TCC will propose the plan through the Pracha Rath steering committee, after which the government should pass it on to the Cabinet and the National Legislative Assembly early next year.
If approved, the budget could be expected to be allocated to each provincial cluster by the middle of 2017.
He said the government was following the right path by promoting the domestic economy, as the global economy faces uncertain growth.
As the Pracha Rath project focuses on driving the domestic economy, it should help Thailand rely less on exports, with that sector declining from 70 per cent of gross domestic product to 60 per cent in 10 years.
The chamber forecasts export value next year to grow by 0-2 per cent after this year’s contraction of about 0-1 per cent.
The TCC also expects GDP growth this year of 3.3-3.5 per cent. As for next year, it foresees many concerns, including the policies of the United States’ incoming Donald Trump administration, the US Federal Reserve’s plan to increase its policy interest rate, and political uncertainty at home.
Dej Churdsuwanrak, secretary-general of the TCC, said more than 80 per cent of the chamber’s members had called for the government to extend by six months a business-tax waiver for enterprises expanding or repairing their factories after |the measure terminates at the end of this year.
