Thai Government to go ahead with the stimulus package
Abhisit Vejjajiva – The Prime Minister of Thailand has urged the lawmakers to approve a $22 Billion to fund an economic stimulus package arguing that it would help create 2 million jobs. He said that the government would ask the parliament for suggestions on ways to stimulate the economy. He further added that the farmer’s debt problems and demands from different groups would be addressed on a priority basis.
He said that the parliament will vote on whether to go ahead with seeking the loan during an extraordinary session staring on 15th June before the issue moves to the senate. The government said that the 800 billion Baht loan which is being pulled from the local markets, will fund a stimulus package worth 1.4 trillion baht over the next three years.
Only last week, Thailand’s constitutional court ruled unanimously in favor of the government going ahead with the first part of the borrowing following the legal challenge by opposition MP’s.
Thailand has entered recession in the first quarter of this year as economic growth shrank by 7.1% due drastic fall in exports, the worst since the 1997 Asian financial crisis. The cabinet has endorsed plans for the borrowing, part of a so called “Strong Thailand 2012” scheme in May of this year.