Deep cut in subsidies for transport service
The Cabinet yesterday approved Bt5.01 billion in total subsidies for the public services of Bangkok Mass Transit Authority (BMTA) and the State Railway of Thailand (SRT) in fiscal year 2020.
Atisit Chainuwat, an assistant spokesman of the PM Office, said after the Cabinet meeting yesterday that the proposed total amount of Bt4.98 billion for BMTA was slashed to Bt1.78 billion, mainly due to a cut in the proposed subsidy of Bt1.95 billion for air-conditioned buses, citing prices issue.
Meanwhile, the Cabinet slashed the proposed amount of Bt7.08 billion in subsidy for SRT to Bt3.24 billion.
Of the subsidy reductions for SRT, its proposed budget for infrastructure was decreased from Bt913.42 million to Bt176.04 million while the amount of depreciation was lowered from Bt1.22 billion to Bt11.33 million.
Proposed interest expense was cut from Bt1.03 billion to Bt41.56 million as some investments were shouldered by the public sector.
In regard to the proposed subsidy for fuel cost, it was decreased from Bt570.29 million to Bt531.72 million due to an adjustment in calculation, while the proposed pension payout of Bt746.84 million for retired officials during the year has also been lowered .
The National Economic and Social Development Board (NESDB) has also agreed with the Ministry of Transport's policy for the two state enterprises, following their rehabilitation, particularly in the areas of organisational restructuring and solutions to financial problems.
