The proposed 2.38 trillion baht fiscal budget for 2012 has set no priorities and offered no solutions to the pressing problems of the country, Democrat Party leader and opposition leader Abhisit Vejjajiva said yesterday.
 |
Prime Minister Yingluck Shinawatra watches opposition leader Abhisit Vejjajiva on a monitor as he takes the floor during the first day of debate on the government’s 2012 Budget Bill in parliament yesterday. The debate ends today. |
Prime Minister Yingluck Shinawatra read out the government's 2012 fiscal Budget Bill to the House yesterday.
Of the total budget, the government has earmarked 120 billion baht to compensate flood victims and for post-flood rehabilitation next fiscal year.
Mr Abhisit criticised the allocation during the House budget debate yesterday and said the government's plan to spend 120 billion baht lacked details and possibly failed to guarantee transparency.
He was concerned the budget would be spent non-transparently by various ministries, because the spending of this budget will not be double-checked by parliament.
The proposed payment of 5,000 baht in compensation for each family hit by the floods will cost about 50 billion baht and the government had failed to present details on the spending of the rest of the 70 billion baht.
He disagreed with the government's plan to raise 120 billion baht for flood compensation by cutting funding from other projects.
The government proposed cutting the education loan budget by 7 billion baht, budget for free medical services by 7 billion baht, and the budget for peace-promotion operations in the far South by 3 billion baht to raise the flood compensation money.
Mr Abhisit said the government might not be able to generate its proposed income of 1.9 trillion baht during the fiscal year as expected as many industries had been damaged by flooding.
Many populist policies would also eat into the government's income.
He cited corporate tax cuts, fuel tax exemptions, the rice mortgage scheme, tax rebates for first-time car buyers, tax reductions for first-time home buyers, and 15,000 baht minimum salaries for government officials.
He also warned the government against its decision to increase the budget deficit from 350 billion baht to 400 baht, saying the rise was dangerous.
"What we are most afraid of is that finally it must collect more taxes from people and business operators, particularly small and medium ones, who are already suffering in the floods," Mr Abhisit said.
Democrat MP for Bangkok Korn Chatikavanij said the deficit increase reflected the government's intention to borrow more and there is no sign the government would try to balance the budget.
"I suggest the government postpone its plan to cut corporate income tax from 30% to 23% next January for another year.
"It could save 100 billion baht in revenue and spend that on rehabilitating SMEs hit by the floods," Mr Korn said.
"The government should also postpone first-car and first-home buying for one year because it is not an appropriate time for such costly policies," he said.
Prime Minister Yingluck insisted the government's tax privilege policies for first-car and first-home buyers should go ahead.
She said the policies would stimulate the economy and do not cost much money. The policies were promised by her Pheu Thai Party to the people so they could establish themselves with a car and home more easily.
Ms Yingluck said GDP is expected to grow by between 4.5 and 5.5% next year on the back of government spending. The debate continues today.
No comments:
Post a Comment