BANGKOK, Dec 16 – With the arrival of the new government, the political atmosphere in the country should improve, which will help facilitate efforts to cope with the country's economic problems, according to Thailand's Permanent Secretary for Finance Suparut Kawatkul.
In particular, he said, should a credible economic team be set up, it would help restore public confidence.
Mr. Suparut urged the new government to speed up government spending since current economic conditions are not positive, but rather in distress.
The government must play an active role in stimulating the economy through disbursements of the annual budget, the investment budget of state enterprises and the budgets of local administration organisations.
"The Finance Ministry is ready to give full support for the new government to boost economic growth although there are some constraints due to budget deficits and (reduced) revenue collection."
Regarding a sharp drop in revenue registered in the first two months of fiscal 2009, he said, that although the siutuation is quite seriuous it is not appropriate to be alarmed because the new fiscal year has just begun.
Mr. Suparut said he sees the need for the government to give importance to stimulating exports and tourism, which plunged in a wake of the global economic crisis.
Outgoing Finance Minister Suchart Tada-thamrongvej said he wanted the new government to take care of the country's battered economy, beset both by the global financial crisis and dolmestic political uncertainties.
He said the government must accelerate restoring confidence among foreign investors because it is expected the economy would experience negative growth in the first and second quarters of next year.
