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Olarn tasked to disburse extra Bt100-bn budget
The Nation – 5 November 2008
The Cabinet yesterday appointed Olarn Chaipravat, the deputy premier in charge of economic affairs, to supervise disbursement of an additional state budget of Bt100 billion to stimulate the economy.
Finance Minister Suchart Thadathamrongvech said the extra money would be on top of a Bt249-billion deficit earmarked for the fiscal-2009 budget of Bt1.835 trillion. Yesterday's approval of the extra Bt100 billion will raise the budget deficit to Bt349 billion.
Olarn earlier said the budget measure was the quickest way to prevent the economy from slowing too rapidly during the present global financial crisis.
"If we can achieve 80 per cent of the measures, including the increase in the budget deficit, our economy should grow 4 per cent this year.
"Budget disbursement yields quicker results than do other stimulus measures, including interest-rate cuts," he said.
The Cabinet also appointed Krasae Chanawongse as adviser to Olarn.
Finance Minister Suchart said the government would next week consider extending tax incentives for the property sector by another year from next March.
At present, the special business tax on the property sector is reduced to 0.1 per cent, from 3.3 per cent before, while property-transfer and mortgage fees are now only 0.01 per cent.
Amid rumours Thailand may cut its corporate income tax in a time of crisis, Fiscal Policy Office director-general Somchai Sujjapongse yesterday said the plan was included in the grand-scale tax restructuring. He said although it was not urgent, corporate income tax could be cut to boost Thailand's competitiveness in the long run.
If so, the tax should be equal to or lower than Singapore's rate of 25 per cent, he said.
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