BANGKOK, Dec 13 – As economic repercussions are spreading through most every part of the world, a senior Thai financial civil servant has called for a new government to be formed soon — this month — to speed distribute the nationally budgeted spending more quickly and lowering taxes, if possible, aimed at reducing the impact of massive lay-offs of workers in Thailand in 2009.
Direcor Ekniti Nitithanprapas of the Fiscal Police Office (FPO) Macroeconomic Analysis Group said there are two ways to resolve Thailand's economic slowdown: tax reductions and increased government spending.
However, he warned that reducing taxes would affect the government's financial standing, and for that reason government spending is the most appropriate as it can solve the problem directly.
A study is now underway to determine measures to help employees from being laid-off, measures such as a tax reduction on salaries, Mr. Ekniti said. The study is expected to be concluded soon.
The FPO is expected to announced a downward revision of its economic projection for 2009, earlier set at 4 per cent, on December 25, due to a sharp decline in the gross domestic product (GDP) in the final quarter this year, he said.
Stock Exchange of Thailand (SET) Research Institute director Kobsak Pootrakul advised the new government to urgently restore investor confidence.
Key economy-related agencies such as the Ministry of Finance must be administered by economic experts to correctly handle economic problems, Mr. Kobsak said.
