Thailand plans bigger budget gap of US$12b for new fiscal year

[BANGKOK] Thailand's military government plans to have a budget deficit of 390 billion baht (US$12 billion) for the fiscal year that will start Oct. 1, which is 56 per cent wider than the current year's deficit, a deputy prime minister said on Friday.

The junta is struggling to revive the economy after staging a coup in May to end months of political unrest and restore confidence. But economic recovery has been slow due to weak exports and subdued domestic demand.

Deputy Prime Minister Pridiyathorn Devakula said the government would need to spend more on infrastructure projects.

The bigger budget gap "is necessary because we have to invest quite a lot. But that is not much of a burden," he told Reuters.

REUTERS