The Thai Cabinet approved a seven pct increase in the national budget for fiscal 1987/88 starting next October compared with a 6.2 pct increase for the current year ending September a government spokesman said. He told reporters the budget to be presented to Parliament by late next month or in early June calls for spending of 243.5 billion baht against 227.5 billion this year. The new budget is intended to make Thailands Gross Domestic Product grow by at least five pct during the year without compromising its conservative fiscal and monetary policy the spokesman said. The budget is in line with our policy to stimulate the economy and to achieve a stable growth while we continue maintaining our current cautious fiscal policy he said. The spokesman said the budget provides for a 9.6 pct increase in fresh government investment expenditure to 39.8 billion baht up from 36.3 billion this year. Government revenue is projected to grow 7.5 pct to 199.5 billion baht against 185.5 billion targetted for 1986/87. He said the budget contains a 44 billion baht deficit or about 3.4 pct of GDP compared with 42 billion or 3.5 pct planned for this year. The deficit is required by Thai laws to be financed by domestic borrowings. The finalised budget bill earmarks 59.8 billion baht or 24.6 pct of total expenditure for servicing the governments domestic and foreign debt up from 56 billion and a similar 24.6 pct this year.
THAI CABINET APPROVES SEVEN PCT BUDGET INCREASE