Thai government budget
for fiscal year 2010 unveiled
Public-Private Partnership centerpiece
By Jon Fernquest 
The
Thai government's budget for fiscal year 2010 was unveiled yesterday.A key future policy initiative was also introduced.
In the future, Public-Private Partnerships (PPP) will help the government perform a dual role of: 1. investing in public infrastructure, while at the same time 2. providing essential social welfare services:
According
to
Mr Abhisit, as the government disburses
huge budgets on social
welfare
schemes, such as free education and old-age pensions, it
will be left
with less money to spend on non-commercial development schemes...The
prime minister said the PPP initiative is not by any means a
form of
privatisation
and instead is about the public and the private sharing
risks and benefits.
Hospital, road construction, water supply, and housing estate projects were mentioned as possible investments.
Investment and social welfare?
Well-designed Public-Private Partnerships could help bridge the rural-urban divide.Rural provincial Thailand lags behind Bangkok in economic development. Investment, not social welfare handouts, is ultimately the only way to bridge the gap.
Thaksin era initiatives such as 30 baht healthcare have whetted people's appetite for a welfare state (Read Jon Ungpakorn's proposal).
If limited government funds go to support welfare state programmes, then less government funds will be available for investment and the private sector has to be called on the help with these investments.
Remember Hopewell
There are, of course, potential problems with Public-Private Partnerships lurking in Thailand's recent history.The Hopewell mass transit project that spanned the whole decade of the 1990s is the most famous public-private [lack of partnership] ending in disaster.
The contract was signed by the notorious rent-seeking politician Montri Phongphanit and the SRT [State Railway of Thailand] in 199o (Read Chang Noi on Montri Phongphanit).
Construction began before securing ownership of land along the route. SRT quickly gained a reputation as a government agency impossible to deal with:
Hopewell
and the
SRT fought each other throughout the implementation of the project. The
Transportation and Communications Ministry was sympathetic to
Hopewell's concerns but was unable
to budge the SRT. Hopewell planned to pay for the project
through the revenue it
would realize
by renting space out at its stations. SRT resistance to Hopewell real
estate plans endangered this element of the plan. The SRT also faced
difficulties in gaining control over those of its lands that were
occupied by squatters
(Source: Unger, Danny (1998) Building
Social Capital in Thailand: Fibers, Finance and Infrastructure,
Cambridge University Press, 162 and 2Bangkok.com).
The last hopes of reviving the failed project fizzled out in 2001.
fiscal year - the
calendar and year begin and end dates that government and company
budgeting and accounting uses ปีงบประมาณ
unveiled - introduced แนะนำ
a centerpiece - the most important and central part แก่น
an initiative - an act done to solve a problem การเริ่มต้นแก้ไขปัญหา
a policy initiative - a government policy to solve a problem นโยบายการแก้ปัญหา
Public-Private Partnership (PPP) - a government service or private business venture which is funded and operated through a partnership of government and one or more privately owned companies (See Wikipedia)
disburse - pay out money from a fund (with money collected for a special purpose) การเบิกจ่ายเงินกองทุน
social welfare - the health, comfort and happiness of people in a society สวัสดิการสังคม
a welfare state - when the government provides money and free services such as education, healthcare, and housing, especially to those people who are old, sick, and unemployed
a scheme - a plan or system for doing something แผนการ โครงการ
a pension, an old-age pension - a system of saving money during a person's work life that provides an income after they stop working (See Wikipedia) เงินบำนาญ
X is not by any means Y - X is definitely not Y (much emphasis) ไม่ใช่แน่นอน
privatisation - change a government owned company into a privately owned company (owned by stockholders) การแปรรูปรัฐวิสาหกิจ
bridge the rural-urban divide - help farmers living in the provinces catch up economically with the Bangkok area ลดช่องว่างระหว่างชนบทและเมืองหลวง
lags behind - slower, not as advanced ล้าหลัง
bridge the gap - eliminate the differences, make the two groups equal ลดช่องว่าง
whetted people's appetite - made people want more ทำให้คนมีความต้องการมากขึ้น
mass transit, public transit - transportation such as trains, subway, and buses which large numbers of people ride, for example: commuting to their workplace each day (See Wikipedia) การขนส่งมวลชน
Hopewell mass transit project - a failed rail and expressway project during the 1990s (See website) โครงการรถไฟฟ้า โฮปเวลล์
notorious - famous in a bad sort of way ซึ่งมีชื่อเสียงในทางที่ไม่ดี
rent-seeking - when an individual, organization or firm seeks to make money by using their power to manipulate the situation and provide favours rather than by trade and production of wealth (See Wikipedia) การให้สินบน
sympathetic to - agree with and support (especially when their is a problem) ยอม เห็นพ้อง
unable to budge Y - unable to move or get them moving (doing and finishing work, achieving goals) ไม่สามารถทำ หรือแก้ไขให้ดำเนินต่อไปได้
revenue it would realize - the money it would receive from doing business รายได้
squatters - people who live on land other people own illegally, without the permission of the owners คนที่เข้าครอบครองสถานที่โดยไม่ได้รับอนุญาต
reviving - bringing back to life ฟื้นฟู
fizzled out - ended slowly, disappeared slowly ล้มเหลว
loan guarantee - a promise to pay back a loan if the borrower cannot pay the loan back การประกันเงินกู้
unveiled - introduced แนะนำ
a centerpiece - the most important and central part แก่น
an initiative - an act done to solve a problem การเริ่มต้นแก้ไขปัญหา
a policy initiative - a government policy to solve a problem นโยบายการแก้ปัญหา
Public-Private Partnership (PPP) - a government service or private business venture which is funded and operated through a partnership of government and one or more privately owned companies (See Wikipedia)
disburse - pay out money from a fund (with money collected for a special purpose) การเบิกจ่ายเงินกองทุน
social welfare - the health, comfort and happiness of people in a society สวัสดิการสังคม
a welfare state - when the government provides money and free services such as education, healthcare, and housing, especially to those people who are old, sick, and unemployed
a scheme - a plan or system for doing something แผนการ โครงการ
a pension, an old-age pension - a system of saving money during a person's work life that provides an income after they stop working (See Wikipedia) เงินบำนาญ
X is not by any means Y - X is definitely not Y (much emphasis) ไม่ใช่แน่นอน
privatisation - change a government owned company into a privately owned company (owned by stockholders) การแปรรูปรัฐวิสาหกิจ
bridge the rural-urban divide - help farmers living in the provinces catch up economically with the Bangkok area ลดช่องว่างระหว่างชนบทและเมืองหลวง
lags behind - slower, not as advanced ล้าหลัง
bridge the gap - eliminate the differences, make the two groups equal ลดช่องว่าง
whetted people's appetite - made people want more ทำให้คนมีความต้องการมากขึ้น
mass transit, public transit - transportation such as trains, subway, and buses which large numbers of people ride, for example: commuting to their workplace each day (See Wikipedia) การขนส่งมวลชน
Hopewell mass transit project - a failed rail and expressway project during the 1990s (See website) โครงการรถไฟฟ้า โฮปเวลล์
notorious - famous in a bad sort of way ซึ่งมีชื่อเสียงในทางที่ไม่ดี
rent-seeking - when an individual, organization or firm seeks to make money by using their power to manipulate the situation and provide favours rather than by trade and production of wealth (See Wikipedia) การให้สินบน
sympathetic to - agree with and support (especially when their is a problem) ยอม เห็นพ้อง
unable to budge Y - unable to move or get them moving (doing and finishing work, achieving goals) ไม่สามารถทำ หรือแก้ไขให้ดำเนินต่อไปได้
revenue it would realize - the money it would receive from doing business รายได้
squatters - people who live on land other people own illegally, without the permission of the owners คนที่เข้าครอบครองสถานที่โดยไม่ได้รับอนุญาต
reviving - bringing back to life ฟื้นฟู
fizzled out - ended slowly, disappeared slowly ล้มเหลว
loan guarantee - a promise to pay back a loan if the borrower cannot pay the loan back การประกันเงินกู้
Budget details
The government plans to spend 1.9 trillion baht in 2010, a decline from an estimate of 1.95 trillion baht this year.The budget was based on expected economic growth of 3% and a 2% inflation rate in 2010.
Revenue from taxes and state-owned company profits next year is forecast at 1.51 trillion baht, down from an estimated 1.58 trillion this year.
A government budget deficit of 390 billion baht is planned for the 2010 fiscal year.
Fiscal stimulus measures financed by the budget deficit are an attempt to continue lifting economic growth in Thailand and safeguard the country against the global economic recession.
The budget includes 245.5 million baht to help small tourism companies weather the effects of the recent political turmoil and a downturn in travel as a result of the global economic slump. The money will help eligible tourism companies shoulder the burden of interest payments for two years.
X based on Y - X
uses Y as a foundation or assumption ขึ้นอยู่กับ
forecast - what they believe will happen in the future พยากรณ์ ทำนาย
government budget deficit - when the government spends more than the taxes it receives การขาดดุลงบประมาณของรัฐ
fiscal stimulus - either tax cuts or government spending programmes to get the economy moving and growing again การกระตุ้นเศรษฐกิจโดยการลดภาษี เป็นต้น
measures - actions taken to solve a problem มาตรการ
fiscal stimulus measures มาตรการกระตุ้นเศรษฐกิจ
safeguard - protect ป้องกัน
weather the effects of - survive the damage done during a crisis รอดพ้นวิกฤติได้
turmoil - a situation of great disorder and confusion ความปั่นป่วน
a slump - a time of reduced economic activity and income, with many people unemployed ช่วงเศรษฐกิจตกต่ำ
eligible - meet the conditions needed for doing something ซึ่งมีคุณสมบัติเหมาะสม
shoulder the burden - do something that is difficult to do แบกภาระ
forecast - what they believe will happen in the future พยากรณ์ ทำนาย
government budget deficit - when the government spends more than the taxes it receives การขาดดุลงบประมาณของรัฐ
fiscal stimulus - either tax cuts or government spending programmes to get the economy moving and growing again การกระตุ้นเศรษฐกิจโดยการลดภาษี เป็นต้น
measures - actions taken to solve a problem มาตรการ
fiscal stimulus measures มาตรการกระตุ้นเศรษฐกิจ
safeguard - protect ป้องกัน
weather the effects of - survive the damage done during a crisis รอดพ้นวิกฤติได้
turmoil - a situation of great disorder and confusion ความปั่นป่วน
a slump - a time of reduced economic activity and income, with many people unemployed ช่วงเศรษฐกิจตกต่ำ
eligible - meet the conditions needed for doing something ซึ่งมีคุณสมบัติเหมาะสม
shoulder the burden - do something that is difficult to do แบกภาระ
Farm price intervention
The government also approved a farm crop price intervention scheme for maize, tapioca and oil palm in the 2009-10 crop season. It will need to spend more than 25.75 billion baht in the programme that involves buying crops to support prices.The government has already approved a price-intervention budget of 11.12 billion baht, raising the total budget to 36.87 billion, excluding 3.98 billion for management costs for the three crops.
Mr Kobsak said the government would need to spend 119.37 billion baht on farm price intervention when budgets for rice and rubber were included.
A budget worth 5.7 billion baht including 1.57 billion baht to buy back farmers' debts and 4.14 billion baht for occupational training was also approved.
farm crop price intervention
scheme - when the government buys crops from farmers at
above market prices, either as a subsidy or as insurance temporarily
low prices โครงการรับซื้อและประกันราคาผลผลิตทางการเกษตร
as subsidy - when the government helps pay the costs of an activity การให้เงินช่วยเหลือ
maize - corn ข้าวโพด
tapioca - cassava, an important food source of carbohydrates, also source of ethanol car fuel (See Wikipedia) มันสำปะหลัง
oil palm - for cooking oil and ethanol car fuel (See Wikipedia) ปาล์มน้ำมัน
as subsidy - when the government helps pay the costs of an activity การให้เงินช่วยเหลือ
maize - corn ข้าวโพด
tapioca - cassava, an important food source of carbohydrates, also source of ethanol car fuel (See Wikipedia) มันสำปะหลัง
oil palm - for cooking oil and ethanol car fuel (See Wikipedia) ปาล์มน้ำมัน
Public-Private Partnership (PPP) initiative
"Prime Minister Abhisit Vejjajiva has unveiled a plan for a public-private initiative to raise funds for construction of infrastructure projects and public services.In an interview with the Bangkok Post, Mr Abhisit said the initiative, which will be submitted to today's meeting of economic ministers, will be instrumental in propping up the country's economy.
According to Mr Abhisit, as the government disburses huge budgets on social welfare schemes, such as free education and old-age pensions, it will be left with less money to spend on non-commercial development schemes.
Several construction schemes are likely to be implemented under the public-private partnership (PPP) model, he said.
"It can be a hospital. It need not be limited to a road construction or a water supply project. It can also be a housing estate project," he said, adding that the scheme is expected to materialise in two years.
The prime minister said the PPP initiative is not by any means a form of privatisation and instead is about the public and the private sharing risks and benefits.
"There will be new rules about which investments the government makes and which ones the private companies do and about how we split the benefits," Mr Abhisit said.
raise funds - get
money from someone to do a project
X instrumental in Y - X provided important help in achieving Y
propping up X - supporting X
a housing estate - a group of buildings or houses that were built together in one place (See Wikipedia)
X materialises - X comes into existence
X instrumental in Y - X provided important help in achieving Y
propping up X - supporting X
a housing estate - a group of buildings or houses that were built together in one place (See Wikipedia)
X materialises - X comes into existence
(Source: Bangkok Post, general news, 18/02/09, Govt agrees to funding ventures to fuel growth, NATTAYA CHETCHOTIROS and CHATRUDEE THEPARAT, link)
