A delay in the formation of new parliament could affect
Thailand's economy due to the constraints on fiscal spending and
subdued confidence in economic policies, according to a local media
report on Tuesday.
The new election date of Oct. 22 set by the Election Commission
(EC would delay the 1.476-trillion-baht (US$38.84 billion) budget
for the 2007 fiscal year until after the new House is convened,
because until then the caretaker government will not disburse the
fiscal budget based on the budgetary framework for the current
fiscal year, Secretary-General Ampon Kitti-ampon of the National
Economic and Social Development Board (NESDC) was quoted by the
Bangkok Post as saying.
The budget procedure delay will have adverse efforts on
investment in new projects and carried-over projects, the
Secretary-General noted.
Caretaker government Finance Minister Thanong Bidaya also
expressed concerns for the declining investment trend, by saying
that the government is expected to introduce new measures to lessen
the impact of rising interest rates and high oil prices with the
aim to boost economy.
Meanwhile, Kartchai Jamkajornkeiat, vice president of the Thai
Garment Manufacturers Association, said that the delay in the
budgeting process for the 2007 fiscal year would have an impact on
private investment.
He added that the protracted administration of the interim
government would dampen confidence in economic policies, such as
the clinch of free trade agreements.
(Xinhua News Agency May 16, 2004)
