Thailand’s Fiscal Sustainability Framework Appeases or Aggravates the Crisis?

The Thai cabinet resolution made on April 21st 2009, for government budget expenditure to be cut by 200 billion Baht in 2010, from a previous budget figure of 1.9 trillion Baht to a new sum of 1.7 trillion Baht, will reduce government expenditure by 1.835 trillion Baht in 2010 from its budget for 2009. The government explanation is that unless expenditure is cut, the more public debt must be borrowed, but that this will violate the Public Debt Management Act, BE 2548.

The Government’s Role to Promote Social Organizations

One major obstruction to social work in Thailand, especially when run by small, nascent and little known social welfare organizations, is their lack of access to funding, whether individually or organizationally sourced. This inaccessibility is partly caused by current regulations. For example, only foundations on the Ministry of Finance list are eligible for tax deductions; and only NGOs in operation for a minimum one year period are eligible for subsidization according to the Social Welfare Provision Act (BE 2546). Under such restrictive legislation, many social welfare organizations cannot access government support, and as a result, due to lagging efficiency and effectiveness, they shut down.