PM urges agencies to only invest in beneficial projects

She advised them to also consider Thailand’s need to improve its competitiveness ahead of the implementation of the Asean Economic Community in 2015.

“The global economic situation has seen fluctuations. There is high unemployment in the United States and a debt crisis in Europe, while the price of oil is increasing. Thailand will certainly suffer from the impacts,” Yingluck said.

“These problems have to be taken into consideration while preparing the budget. We will have to rely more on the economy and stimulate local spending. That means increased industrial output, more tax revenue and higher government spending.”

The prime minister was addressing a gathering of agency chiefs and provincial governors at the Impact Arena, Muang Thong Thani, where she presided over the opening of a seminar on government guidelines on the budget for fiscal 2013.

Yingluck said Thailand’s economy had only expanded by 0.1 per cent last year due to the flood crisis, though this year the government expects the gross domestic product to grow by 5.5-6.5 per cent.

According to the premier, about Bt2.4 trillion will be needed for state spending in fiscal 2013, which is about Bt20 billion more than is being spent in the current fiscal year. Yingluck explained that the government needed to borrow in order to compensate for the Bt300-billion budget deficit, adding that even though there were many on-going development projects, there was still a need to tighten the belt. She then went on to say that funds should only be requested for necessary projects.