Budget fails to target living costs, poverty: Abhisit

Abhisit also said the estimated economic growth of 5.5 to 6.5 per cent in fiscal 2013, which starts on October 1, was based on “an illusion of many economic figures”. He said the expected high growth was mainly propelled by a surge in consumption and investment as part of a recovery following last year’s flood crisis. “The growth does not point to improved well-being.

“The government’s budget law fails to answer questions on how people’s lives will be improved and how the problem of social inequality will be tackled,” said Abhisit, who is also the Democrat Party leader.

Speaking during the House of Representatives’ debate on the Budget Bill, the ex-premier said the planned deficit of Bt300 billion in the Bt2.4-trillion budget was made to look like the government was trying to maintain stability in public debt. But he said the government had borrowed Bt400 billion.

“Having been in power for less than a year, the government has created almost Bt1 trillion in public debt due to borrowings and policy mistakes.”

Abhisit said the government planned to spend as much as Bt300 billion on its price-pledging policy for farm produce. He added that the project would lead to a loss of Bt100 billion of state funds within a year, as farm commodities were bought at rates higher than market prices. He said his government spent less than Bt40 billion on its subsidy project that covered a large number of farmers.

If the government insisted there was no problem of high prices of food and consumer products, he said it should not have allocated Bt1.45 billion to tackle the problem. He also did not think the fund to help ensure cheaper products could be distributed effectively to different areas. “It will be a waste of taxpayers’ money.”

In regard to the government’s estimate that Bt2.1 trillion in revenue would be collected for the budget, Abhisit expressed concern that the administration might increase taxes. He noted that certain government figures had floated the idea of raising VAT, the value added tax, which he said would increase living costs.

He said while Bt2 billion was allocated for its project to provide tablet computers for first-grade pupils, it had decreased budgets for agencies such as the Thailand Research Fund.