Quote:Budget needs closer scrutiny

The government released details of its proposed budget for the next fiscal year beginning on Oct 1, and it has raised serious concerns. The budget is to rise to 1.66 trillion baht, more than 10% of which will have to be borrowed at a time the economy is weakening. Most attention has rightly focused on military spending. That is to rise to 143 billion baht. The most astounding fact about this figure is that two years ago the armed forces were working with a budget of 86 billion baht. Last year it rose to 115 billion. Thus, in less than two years, the military has increased spending by 66%, raising the question of what happened to the idea of a sufficiency economy.

The military naturally needs and is entitled to a proper budget. The armed forces protect the country, and sacrifice at great personal cost to themselves and families. Soldiers, sailors, airmen and marines do not just require, but absolutely deserve both the weapons and equipment to do their jobs, in a way that will return them safely from their missions. But the trust and respect must work both ways. All citizens must be assured that their taxes and support are properly employed by the government and the military establishment. There are many unanswered questions about whether the military is making essential purchases, or acquiring more means to cling to power.

The huge increase in the military budget awaits such a justification.

The violence in the South has compelled a military response, of course. But the explanation with the latest budget said that the funding for the South will largely come out of a 17.6 billion baht fund for counter-insurgency efforts until 2011. Military budgets in the past decade have taken a hit in the long, slow recovery from the 1997 financial crisis. Yet it is both inevitable and unavoidable that so many people are asking why the budgets since the Sept 19 coup have contained such dramatic increases in funding the military establishment.

There is still a legitimate question, however, over just how much the southern war is costing. The military and the government it appointed should know there is strong suspicion across the country that the generals are padding the military budget for no other reason than because they can. Since the military took power last year, top officers have moved to take or to retake power in fields they had long relinquished. State enterprises have essentially been put under military control just as they were in the darkest days of army dictators. This is not good for the country, and will be used against the military when democracy returns.

The most attention-getting military conquest lately has been at the TOT Plc, whose post-coup chairman is Gen Saprang Kalayanamitr, the deputy secretary-general of the Council for National Security (CNS) and assistant army commander. He has turned the spotlight on what is supposed to be a telecommunications company. For now at least, he has demanded that the TOT fund a mysterious, off-the-books purchase of equipment suspected to be for high-tech wire-tapping. Ignore for a moment the assurance by the CNS that it had outlawed such secret surveillance.

Gen Saprang's wish to wring 800 million baht out of the state-enterprise income in order to make an off-budget, hush-hush purchase is destined to become a textbook example of undemocratic behaviour. Far from the ''normal procedure'' of a ''small sum'' that the general claims, the wheeling and dealing behind closed boardroom doors is troubling. One must remember that fired TOT president Vuthiphong Priebjrivat only told the truth after he had been fired. How many other such deals are there, where the military is squeezing taxpayers for even more funds off the budget?

The growing budget and the even faster-growing military spending are troubling. The CNS has not demonstrated spending responsibility. The fiscal policies of the interim government have been alternately puzzling and erratic. It often seems that the economy of Thailand continues to grow despite official actions, rather than because of them.

The budget is ample proof of the need for an elected administration able to put the country on a planned and accountable footing.

BKKPost

For those still don't believe the Military has it's own agenda. Please check your wallets as most pockets have been now deeply picked.

The main agenda so far, is to go all out to fry Thaksin and then be compensated in dubious ways for their efforts. Not bad at all.

Jaggernaut Wrote:The main agenda so far, is to go all out to fry Thaksin and then be compensated in dubious ways for their efforts. Not bad at all.

It's the Thai way...LOL

Quote:New budget unveiled

(BangkokPost, Agencies)
The government officially unveiled its record budget for 2008 on Wednesday, featuring spending of 1.66 trillion baht, a deficit of 165 billion, and another increase of 24 per cent in military spending.

The defence ministry will get the biggest increase in spending, with a budget of 140 billion baht, representing 8.6 per cent of the budget overall.

Fixed government spending will account for 72.8 per cent of the total budget, investment for 24.4 per cent and debt service for 2.8 per cent.

Interim Prime Minister Surayud Chulanont, selected as premier after the Sept 19 coup, announced the budget in a speech to the military-appointed parliament.

The budget is six per cent bigger than that for the fiscal year ending this September. The deficit is 65 per cent more than the deficit expected in this fiscal year, Gen Surayud said.

"The deficit will be 1.8 per cent of GDP and will not affect the country's economic stability. The government intends to maintain continuous growth," he said.

"The 2008 budget is based on the assumption that the country's economy will grow by 5.0 per cent and inflation will be around 3.0 per cent,"

Gen Surayud said more spending was needed to shore up confidence in the private sector and to boost economic growth.

Increased government spending will boost infrastructure projects, including more railway lines for the mass transit system here and improved highways around the country.

Government revenue is expected to be 1.49 trillion baht in the new fiscal year.

The budget deficit will be covered by borrowing in the domestic market.