Thailand plans bigger deficit due to COVID-19 as budget debate starts

[webfact]

Thailand plans bigger deficit due to COVID-19 as budget debate starts

 

FILE PHOTO: The sun sets over the Bangkok skyline November 14, 2014. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - Thailand's parliament began debate on Wednesday on a budget bill that projects a larger 623 billion baht ($20.14 billion) deficit for the 2021 fiscal year starting Oct. 1, as the government tries to revive an economy hit badly by the coronavirus.

 

Southeast Asia's second-largest economy could shrink a record 8.1% this year, the central bank predicts. The budget planners expect a contraction of 5.0-6.0%. 

 

"The Thai economy remains highly uncertain and may perform worse than forecast if the COVID-19 outbreak continues," Prime Minister Prayuth Chan-ocha told the House of Representatives, which plans to debate until Friday.

 

The 623 billion baht deficit, accounting for 3.7% of GDP, is up from the 523 billion baht planned in January, and 32.8% higher than the previous fiscal year.

 

The government expected revenue to fall by 100 billion baht in the next fiscal year. The budget gap was increased by the same amount in late March, when Thailand imposed restrictions to curb the outbreak, Budget Bureau chief Dechapiwat Na Songkhla told Reuters.

 

The bill still projects spending of 3.3 trillion baht, up 3.1% from the previous year.

 

The budget plans for government investment of about 675 billion baht, up 4.7% from the previous year, and slightly lower than the 693 billion baht estimated in January.

 

The bill's second and third readings are expected in early September, Dechapiwat said. It will also needs senate and royal approval.

 

The budget planners have assumed the economy will grow 4.0-5.0% in 2021.

 

($1 = 30.95 baht)

 

(Reporting by Orathai Sriring and Panarat Thepgumpanat; Editing by Martin Petty)

 

-- © Copyright Reuters 2020-07-01

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

[dpcjsr]

So the people who created this mess are now in charge of fixing it. Brilliant. 

[Brunolem]

A 3.7% budget deficit...this is what many Western countries get when their economies are in full swing.

 

The US is going to have an almost 20% budget deficit this year...so nothing to worry for Thailand.

 

Yet, the Thai government keeps on throwing around big numbers, but very few specifics on how and when exactly this money will be spent...

[mommysboy]

Tiny numbers really, and likely to be ineffective.

[Misab]

18 hours ago, dpcjsr said:

So the people who created this mess are now in charge of fixing it. Brilliant. 

What a stupid ting to write, they did not create it. Corona virus did.

Edited July 2, 2020 by Misab

[phetphet]

On 7/2/2020 at 11:04 AM, Brunolem said:

A 3.7% budget deficit...this is what many Western countries get when their economies are in full swing.

 

The US is going to have an almost 20% budget deficit this year...so nothing to worry for Thailand.

 

Yet, the Thai government keeps on throwing around big numbers, but very few specifics on how and when exactly this money will be spent...

or sliced.