INVESTMENT
With Thailand moving ahead with populist spending and big-ticket investments this year, the government is being urged to invest only in essential projects that help to enhance the country's competitiveness and cut operating costs for the private sector.
"The new investment should also generate additional revenue, similar to the Chinese government's investment in train and rail assembly plants, where the output can also be exported or help to cut imports of capital goods," said Kosit Panpiemras, the executive chairman of Bangkok Bank Plc.
Arkhom Termpittayapaisith, secretary-general of the National Economic and Social Development Board, urged the government to promote train assembly factories in Thailand since it plans to develop high-speed train projects.
The government embarked on a number of capital-intensive projects last year to spur the economy and strengthen the country.
Chief among these were water management and flood prevention programmes, while numerous planned infrastructure projects, mainly for transport, are to be carried out over the next seven years.
Early last year, the government approved new public debt of 350 billion baht for spending on water-management and flood-prevention programmes.
The flood crisis of late 2011 ravaged many commercial and residential areas.
For the water management programmes, expected to be completed within three years, 300 billion baht will focus on projects in the Chao Phraya River basin, with another 50 billion devoted to projects in 17 other river basins nationwide.
Finance Minister Kittiratt Na-Ranong earlier estimated about a quarter of the 350 billion baht borrowed for water management projects will be disbursed this year.
The government is also finalising plans to authorise new spending of 2 trillion baht over the next seven years for public infrastructure.
The Fiscal Policy Office reports this investment will focus primarily on strengthening logistics networks including new railway, road, waterway and air projects.
Mr Arkhom said 100 billion of the 2 trillion baht will be used to help enhance the country's logistics system.
He said priority should be given to the construction of a dual-rail project linking Phrae's Den Chai district with Chiang Rai's Chiang Khong district; three motorways, from Bang Yai to Kanchanaburi, Bangkok to Nakhon Ratchasima, and Hat Yai to Sadao; Bangkok's mass transit projects; and the first stage of the high-speed rail project from Bangkok to Nakhon Ratchasima (for the Bangkok-Nong Khai route), Bangkok to Phitsanulok (for the Chiang Mai route) and Bangkok to Hua Hin (for the Bangkok-Padang Besar line).
Mr Arkhom also urged the government to improve facilities at key border checkpoints to facilitate border trade such as the Sadao checkpoint in Songkhla, Chiang Khong in Chiang Rai and Ban Phu Nam Ron in Kanchanaburi.
He also advocated the expansion of Suvarnabhumi airport.
The Finance Ministry estimates the public debt for fiscal 2013 will be 47.5% of gross domestic product (GDP).
Debt service expenditures in the fiscal 2013 budget are set at 7.4% of total expenditures.
The ministry's fiscal management framework calls for public debt to be capped at 60% of GDP, with debt service expenditures limited to 15% of annual government expenditures.
The public debt stood at 43% of GDP worth 12 trillion baht last year.
Share this article
About the author
Writer: Chatrudee TheparatPosition: Business Reporter
Bangkok Post online classifieds
Try buying selling goods and properties 24/7 in our classifieds which has high purchasing power local expatriate audience from within Thailand and around the world.
Article source: http://www.thethailandlinks.com/2013/01/07/industry-leaders-push-prudent-project-spending/
0 comments:
Post a Comment