#  >  > Living And Legal Affairs In Thailand >  >  > Thailand and Asia News >  >  > Business, Finance & Economics in Thailand >  >  Thailand : Huge economic-stimulus package to be unveiled today

## Mid

*Huge economic-stimulus package to be unveiled today*
By Wichit Chaitrong
July 15, 2008

*The government will today unveil an economic-stimulus package worth Bt30 billion to Bt40 billion and plans to inject more money into the economy to help those hardest hit by rising energy costs, especially low-income groups.* 

The government will today unveil an economic-stimulus package worth Bt30 billion to Bt40 billion and plans to inject more money into the economy to help those hardest hit by rising energy costs, especially low-income groups. 

Finance Minister Surapong Suebwonglee said the Cabinet was expected to approve a package of measures proposed by the Finance, Energy and Transport ministries. High on the list is a Finance Ministry proposal to cut excise tax on E85 gasohol from Bt2.5795 a litre to 50 satang. 

The Cabinet will also be asked to approve government coupons for the poor, in order to help reduce the cost of living for those worst affected by rising prices. Families with a monthly income of Bt6,000 or less will be given coupons to buy basic necessities at subsidised prices or obtain free public services. 

The National Economic and Social Development Board will identify those qualified to receive the coupons. 

Overall, these and other undisclosed measures are worth an estimated Bt30 billion to Bt40 billion, said Government House sources. 

The government will also consider increasing the budget deficit in fiscal 2009 beyond the currently planned 2.4 per cent of gross domestic product if the economic slowdown worsens. 

The fiscal-2009 budget, which is now before Parliament, provides for expenditure of Bt1.835 trillion, while revenue is expected to be Bt1.585 trillion. However, the budget's mid-year spending could be increased by running a larger fiscal deficit in fiscal 2009, which begins this coming October 1. 

Surapong said liquidity could start to tighten in the second half of the year as US and other foreign investors abandon the local bourse because of the deepening consequences of the US sub-prime mortgage crisis. 

On mega-infrastructure projects, implementation of which has failed to advance, Surapong said the govern-ment would begin construction this year on at least one mass-transit line: the Purple Line linking Bang Sue and Bang Yai. 

Government House sources said additional measures to help the poor would include free tap water for households consuming less than 50 units a month and free electricity for households using less than 150 units a month. 

As well, the Interior Ministry will provide 700 public buses in Bangkok that will give free rides to passengers presenting government coupons.

nationmultimedia.com

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## baldrick

relocating many government offices to Cheang Wattana road - and maybe even parliment house - mass transit plans ? fcuking stupid cnuts

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## Mid

*Six relief measures for the people*
Tue, July 15, 2008

*The government on Tuesday unveiled six measures to help citizens fight with economic woes. Embattled Prime Minister Samak Sundaravej chaired the press conference to showcase the relief package.* 

The six measures will remain in effect for six months until the government can inject money into the economy via mega projects, Samak said. 

The measures are; 

1. Reduction of excise charges for gasohol. This will lead to a price difference of around Bt8 per liter between premium petrol and gasohol. The diesel price will be down by about Bt2.71 per liter. The new excise will take effect on July 25. 

2. Suspend price adjustment for cook gas. 

3. Reduction of water charges. The government will completely shoulder the water costs for household users with the consumption rate of less than eight cubic liters per month. 

4. Reduction of electricity charges. The government will completely shoulder the electricity for household users with the consumption rate of less than 80 units per month. For those using 81-to-150 units per month, the government will help paying half of the charges. 

5. Commuters of non-airconditioned buses in Bangkok will avail themselves to free services. Of 1,600 buses, half will offer free rides for commuters although the government will pay for the fares. 

6. All third-class train services in every route nationwide will not charge to passengers because the government will pay the fares on their behalf.

nationmultimedia.com

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## good2bhappy

wow!
Now I can rough it for free
Someone has to pay for this in the long run?

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## Spin

Ok, offering folks a bit of help is good for 6 months but the way things are going, in 6 months time the world economy will probably be worse than it is now. Very good chance of war in Iran an will oil be cheaper than it is today?
All this talk of stimulating the economy with mega projects, pah! Those just grease the palms of key construction company owners forced with Burmese labour.
Perhaps the answer is to raise the salary of those guys earning less than 6000 baht per month but that would mean greedy people have to become less greedy so that will never happen.

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## ray23

Thats great but the part that is missing from my understanding is you still hav to qaulify as a low income household . So lets see if live in Bangkok you can get to work for free maybe. If you travel in third class train hey it's freebie but how often  do thais actually use a traint og o anywhere.

we make gasoil cheaper great if the the older  bikes and cars in the country could use the stuff. yep another great help. Oh ya by the way the cooking gas you use everyday is going to cost more. Yep this shoud do the trick.

It rates up there with buying fuel from Russia that needs to be refined again to be usable here You save 8 baht for a liter build a new refiner costing billion of baht and you haven't even factored in tranporting the fuel yet. Oh ya that will end up being cheaper.

You know sometime I wonder about the decesions here, but this one I'm not wondering about at all. Reminds me of the worlds largest bill board in Bangkok when Bush was here. The slums were still there, But were really not the because the bill board hid them Right!

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## good2bhappy

It is a good sound bite for a floundering govt?

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## Thetyim

> High on the list is a Finance Ministry proposal to cut excise tax on E85 gasohol from Bt2.5795 a litre to 50 satang.


If I am informed correctly (please correct me if I am wrong) then only Volvo make E85 compatible cars at the moment.
So this high priority measure will only benefit punters who purchase a 2008 Volvo

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## Fabian

> wow!
> Now I can rough it for free
> Someone has to pay for this in the long run?


Sure, the taxpayer.

What a waste of money!

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## Whiteshiva

> 3. Reduction of water charges. The government will completely shoulder the water costs for household users with the consumption rate of less than eight* cubic liters* per month.


How long is a cubic liter? :Roll Eyes (Sarcastic):

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## Spin

> Suspend price adjustment for cook gas.


Correct me if Im wrong but i heard lots of thais moaning about the way the price of this has shot up already. Suspending it at its current price doesnt really help much as the current price is already killing folks. Just this week a couple of the places i eat raised their prices by 5 baht, as i said before, no big deal for the average farang but thats a 25% increase on one nesscessity in one day. For folks trying to string out 5k over a month this is some serious shit and I really feel for them.

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## good2bhappy

water consumption is measured in cubic litres

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## Spin

> How long is a cubic liter?


 :Smile:  Well spotted

A cubic liter is 10 cm long by 10ch wide by 10 cm high isnt it? it would weigh 1kg also? have I got that right?

They mean cubic metres dont they?

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## Spin

> water consumption is measured in cubic litres


cubic meters, or 1000 litres or liters.

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## Travelmate

> On mega-infrastructure projects, implementation of which has failed to advance, Surapong said the govern-ment would begin construction this year on at least one mass-transit line: the Purple Line linking Bang Sue and Bang Yai.


I have been waiting for this project to start since 2004. They better push the "START" button this time. Or the construction industry will be in serious decline.

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## Thormaturge

Politicians could always donate half of their salaries to the poor and needy.

Thaksion Shinawatra could sell Manchester City and donate the money to the people who helped him make it.

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## blackgang

^ You have got to be kidding.

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## William

> On mega-infrastructure projects, implementation of which has failed to advance, Surapong said the govern-ment would begin construction this year on at least one mass-transit line: the Purple Line linking Bang Sue and Bang Yai.


Isn't this the one being paid for by JBIC?

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## Whiteshiva

> Originally Posted by Whiteshiva
> 
> How long is a cubic liter?
> 
> 
>  Well spotted
> 
> A cubic liter is 10 cm long by 10ch wide by 10 cm high isnt it? it would weigh 1kg also? have I got that right?
> 
> They mean cubic metres dont they?


There is no such thing as a cubic liter.  :Smile:   Just as there is no cubic gallon, or cubic pint.  

I suspect as you do, that they really meant a cubic meter.  I can't imagine there being any household capable of using less than 8 liters a month - no matter how much they fiddle with the meters..... :Smile:

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## Mid

*Relief measures don't benefit economic system, says academic*

 

*BANGKOK*, July 16 (TNA)  The government's six new relief measures for the people -- particularly the reduction of excise charges for gasohol (a blend of gasoline and ethanol) and diesel -- will not benefit Thailand's economic system, according to Tienchai Chongpeepien, an energy affairs academic.

He conceded that low-income earners will gain some benefit from the measures, but said anything could not be gotten for free. "Once the government reduces water and electricity charges, offers free rides on public buses and third-class trains, and cuts excise charges for fuel, it must finally seek tax revenue from other channels to offset the shortfall.

"Should tax collections be lower than targeted, the government will need to seek loans or issue bonds. That means that public monies will eventually be used to solve the problem," he said.

Dr. Tienchai said the measure to reduce excise charges for gasohol and diesel had not benefited the poor because most of them do not own vehicles or motorcycles.

The oil tax cut measure was issued only to please people in the urban areas, middle-income earners, and transport operators.

Now, it should be monitored whether transport operators would cut fares or transport service fees or not.

"The oil tax reduction benefits (no sector) but it will cost the government about Bt 40 billion. At the same time, the tax cut goes against the energy-saving campaign," he said.

Former Energy Minister Piyasawasdi Amaranant said it was useless to comment on the oil tax reduction policy because it had benefited none. (TNA)

enews.mcot.net

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## Fabian

I think I will take extensive use of the free bus rides.

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## Mid

*Poll: People satisfied with economic stimulus programme*

(BangkokPost.com) - More than 60 percent of those questioned in a recent poll conducted by Suan Dusit Rajabhat University are satisfied with six government measures to solve economic crisis. 

Of all six measures, respondents throughout the country are most happy with the postponement of the increase in price of LPG gas. 

But those in Bangkok alone are happy with the cut in excise tax for fuel, according to the survey. 

For those with income lower than 10,000 baht, they are most satisfied with the free buses for Bangkok residents and free third-class train travel. 

The government announced six measures early this week to help low-income people, at a cost of 47.4 billion baht. All effective from Aug 1 to Jan 31 except the fuel tax cut, which starts July 25.

bangkokpost.com

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## Smeg

> 5. Commuters of non-airconditioned buses in Bangkok will avail themselves to free services. Of 1,600 buses, half will offer free rides for commuters although the government will pay for the fares. 
> 
> 6. All third-class train services in every route nationwide will not charge to passengers because the government will pay the fares on their behalf.


Farangs can ride for free on the buses, but not on the third class trains.

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## Happyman

> Originally Posted by Mid
> 
> 
> 5
> 
> 6. All third-class train services in every route nationwide will not charge to passengers because the government will pay the fares on their behalf.


I can see it now 

1 loco
11 first class carriages
1 carriage 50%/50% second and third class seats !  :Smile:

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## Norton

> There is no such thing as a cubic liter. Just as there is no cubic gallon, or cubic pint.


Be better to know the length of a cubit.  When the economy has sunk below the surface, building a big boat and boarding all Thais two by might be the only hope.

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## DrB0b

*SRT : free trains but no money left to pay wages in october*

from Thailand Crisis by ThaiCrisis

Here is a perfect illustration of the total non sense of the gvts policies.
In july, the government decided, among a pack of tax cuts on fuels, to offer free rides on all trains (3rd class) for 6 months
Nothing is free. People do not understand this very basic idea.
And SRT is not a _regular_ company. Its a public black hole, with debts, poor infrastructures, trains from the past century, insanely over staffed, etc.
Anyway. A few weeks later some ugly figures are coming out. The SRT wont be able to pay salaries in october, unless the government provides a massive money injection (another one, after 4 billions) !*Employees of the State Railway of Thailand may not receive their salaries in October if the government does not speed up the allocation of an emergency liquidity injection of Bt4.2 billion this month.*
 Our cash flow is enough to cover expenses for September, said SRT chief financial officer Arak Ratboriharn. If the government delays a decision on the emergency injection, we will have no money left for salary payments, starting in October.
 SRT has to pay Bt500 million to Bt600 million in salaries monthly. The agency hopes that the Cabinet will speed up its consideration of the emergency liquidity injection. The matter was submitted for Cabinet consideration two months ago, but so far the Cabinet has delayed making a decision.
 Besides the emergency injection of Bt4.2 billion,* SRT also requires the Cabinets approval to increase its overdraft loan limit by approximately Bt800 million.*
 The agency believes that the emergency funding as well as the overdraft increase would be enough to cover expenses in the 2008 fiscal year including employees salaries and interest expenses, said Arak.
 *Early this year, the Cabinet approved an injection of Bt4 billion for SRT. If the Cabinet approves the additional Bt4.2 billion, emergency funding this year will total more than Bt8 billion.*
 Arak said SRT faced losses due mainly to the increase in diesel prices, as the agency has not been able to adjust fares because that would affect the public. SRT expects to post losses of Bt9 billion this fiscal year, which will end in September.
 SRT also provides a free rail service as one of the six government measures to help people cut living costs. However, the agency does not know how the government will subsidise the policy. SRT expects the government to pay the agency Bt40 million to Bt50 million per month. This service will not affect SRTs liquidity, Arak said. (Nation)

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## bkkandrew

^How does this fit with the Samak plan for high-speed trains? :Roll Eyes (Sarcastic):

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## Fabian

> "The oil tax reduction benefits (no sector) but it will cost the government about Bt 40 billion. At the same time, the tax cut goes against the energy-saving campaign," he said.


There we have the 40 billion baht to make the BTS system debt-free.

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## Smeg

The free buses are a joke. Poor thais will stand and watch a non-free bus go by to wait for a free bus. So the non-free buses are empty and the free buses are jam-packed, and lots of people get a less comfortable ride and get home later than previously.

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## Fabian

Actually that's brilliant, everyone who can afford a bus ride will ride much more comfortable.

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## bkkandrew

> Actually that's brilliant, everyone who can afford a bus ride will ride much more comfortable.


 :goldcup:

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## Thormaturge

The next step will be to rip out the aircon on the non-free buses so they can be allocated to the free routes.

Ultimately all the buses will be free and will draw people away from the BTS and MRT thereby creating more pollution.  Additionally the BTS and MRT will be forced to reduce prices to attract passengers back, thereby causing reductions in cleaning and maintenance schedules so that eventually the entire public transport system in Bangkok will be free, substandard, and overcrowded.

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## Mid

*FTI to submit 8 proposals stimulating Thai economy* 
03 October 2008 

Mr. Santi Vilassakdanont, Trustee Chairman of the Federation of Thai Industries (FTI), will forward eight proposals helping to turn around Thai economy during the last quarter of this year to the Ministry of Finance this morning (October 3) 

Meanwhile, Thailand's inflation rate in September eased for the second month to 6% as global oil price was on downtrend, according to Ministry of Commerce. 

Mr. Santi Vilassakdanont, Trustee Chairman of the Federation of Thai Industries (FTI), a body grouping Thai private industries, President of Saha Pathana Inter-Holding Public Co., Ltd, Thailands consumer products' conglomerate, said on Thursday that FTIs executive board would today (October 3) meet with and submit eight proposal to Minister of Finance, Mr. Suchart Thadathamrongvech, to help pushing Thai economy to turn around during the last quarter of this year. 

The eight proposals include : 1. Four measures to be prepared for adverse impacts from prevailing US financial woes which has adversely affected the worlds economy, including the financial authorities monitoring and taking care of liquidity in the Thai financial market, financial authorities taking care of bahts exchange rate to be coincident with neighbouring forex rates, either maintaining or adjusting local interest rates to play increased role to help stimulating Thai economy, and accelerating tax rebate procedures to indirectly boosting Thai exports. 

Meanwhile, Thai Inflation soared to a 10-year-high of 9.2% in July prompting the Bank of Thailand to cut policy interest rates by 25 basis points to 3.75% in August which saw inflation up 6.4% on the previous year. 

According to Ministry of Commerce, although the downtrend in oil prices had pushed consumer price inflation down again in September, the cost of food was up. 

General food prices in September rose 15.7% from last year, due mainly to rising costs of rice, flour, fruit and vegetables. 

"The decline of the inflation rate in September was due mainly to a decline in oil prices," said a Ministry of Commerce official. 

Mr. Siripol Yodmaungcharoen, Permanent Secretary of Commerce, said on Wednesday Thailands inflation in the first nine months of the year averaged 6.5%, while fuel prices were at 30.9%. 

Oil prices hit record highs of more than 147 dollars a barrel in July, but steadily went down and slid even further in late September as US lawmakers rejected a 700-billion-dollar rescue package for ailing American banks. 

Ministry of Commerce forecast inflation in Thailand over the year at between 6.5% and 6.9%. 

"As the oil price is tending to be significantly lower than the ministry's assumption, inflation this year shouldn't be at the high-end of the range," Mr. Siripol said. 

Thai economy has been shaken by ongoing street protests by the Peoples Alliance for Democracy and prevailing US financial crisis, with the Thai stock market falling nearly 30% since May.

thainews.prd.go.th


Mid : is over stimulation possible ? , or perhaps 'tis just dead .............. :Smile: 

.

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## Spin

> Thai Inflation soared to a 10-year-high of 9.2% in July prompting the Bank of Thailand to *cut policy interest rates* by 25 basis points


You dont control inflation by cutting interest rates, well, not in a normal country you dont.

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## Mid

> *Poll: People satisfied with economic stimulus programme*
> 
> (BangkokPost.com) - More than 60 percent of those questioned in a recent poll conducted by Suan Dusit Rajabhat University are satisfied with six government measures to solve economic crisis. 
> 
> Of all six measures, respondents throughout the country are most happy with the postponement of the increase in price of LPG gas. 
> 
> But those in Bangkok alone are happy with the cut in excise tax for fuel, according to the survey. 
> 
> For those with income lower than 10,000 baht, they are most satisfied with the free buses for Bangkok residents and free third-class train travel. 
> ...


 
*LPG* 

*Thailand raises LPG price by Bt6 per kg*
Thu, November 13, 2008 : Last updated 18:23 hours

*Liquefied petroleum gas price for transport and industrial use will be increased Bt6 per kg, or 33 per cent, within three months from November, according to the National Energy Policy Committee.*

The price would be raised Bt2 a month until it reaches Bt24.13 per kg. 
Energy Minister Wannarat Charn-nukul said yesterday that next week it would be known the date when the price increase would take effect.

nationmultimedia.com

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## Fabian

Another good idea, wait until everyone (or at least every taxi driver) switched to gas and then rise the price by 33%

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## Rural Surin

THANKS, BUT NO THANKS. I'M WAITING FOR THE REVOLUTION.... :nerner:

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## Mid

*LPG* 

*Taxi drivers petition LPG price hike*
Wed, November 19, 2008 : Last updated 15:32 hours

*Siam Taxi Co-operative Ltd Chairman Vitoon Naewpanich and about 10 representatives of taxi clubs on Wednesday submitted a petition to Prime Minister Somchai Wongsawat, asking for the suspension of a hike in the liquefied petroleum gas (LPG) price.* 

_snip_ 

nationmultimedia.com


https://teakdoor.com/business-finance...tml#post839637 (Thailand Posts Biggest Trade Deficit in Three Months)

appoligies for the double post ,

should of gone in here and went there instead

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## Mid

*Thailand delays LPG price rise after PM quits*

BANGKOK, Dec 3 (Reuters) - Thailand has postponed a plan to raise the priceof liquefied petroleum gas (LPG) used in cars and industry after Prime MinisterSomchai Wongsawat was forced to step down, a minister said.

"We have to wait for the new prime minister to sign for final approval.It will depend on how long it takes for the new cabinet to be formed," 
EnergyMinister Wannarat Charnnukul told reporters on Wednesday. 

Somchai was banned from politics for five years on Tuesday and his partydisbanded for electoral fraud. Coalition party members will switch to new"shell" parties and vote for a new prime minister on Dec. 8. 

The government had planned to gradually raise LPG prices by a total of 6baht ($0.17) per kg, or 33 percent, in increments of 2 baht per month to bringit more into line with actual costs and reduce state subsidies. For now, the planned rise excludes LPG used in households andpetrochemical plants. 

The LPG price is currently fixed at 18.13 baht per kg, but the governmentbegan moving towards a floating price regime in July in order to reduce costlysubsidies. Subsidies have been in place for years and were originally intended tohelp households and food vendors who use cooking gas. 

The subsidy bill has risen as motorists have switched to the fuel. LPG is commonly used in Thai households as a fuel for cooking and forheating water and is sold to them in kgs, while LPG for vehicles is sold inlitres. Today's LPG pump price is over 11 baht per litre. Households account for 46 percent of total consumption, petrochemicalproducers 20 percent, industrial users 15 percent and cars 19 percent. 

($1 = 35.45 Baht) (Reporting by Khettiya Jittapong; Editing by Alan Raybould)

orange.advfn.com

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## Mid

*FTI backs relief measures*
 6/06/2009

Santi Vilassakdanont, chairman of the Federation of Thai Industries (FTI), said he agreed with the governments plan to extend term of its 5 measures, 6 months relief scheme as it will help ease expense burden of people at a time of economic slowdown.

 The government had earlier considered to extend term of the relief scheme to help low income people for another six months. The measures include free riding of trains and busses, free using electricity and tapped water and stabilizing price of cooking gas. These measures started on February 1 and will end on July 31. 

 Meanwhile, Kirida Phaophichit, a senior economist at the World Banks Bangkok office, said the government should consider its financial status prior to make decision on whether or not to extend timeframe of the relief measures. Ms Kirida suggested that in the long term, the government should allow price of cooking gas to move in line with market mechanism.

 Thanawat Polwichai, director of the Economic and Business Forecasting Center at the University of Thai Chamber of Commerce, took the same tone. Dr Thanawat said he supported the idea to extend term of the five relief measures as the economy has not yet picked up. However, he cautioned that the measures could encourage people to refrain from saving money and thus they should be revoked immediately after the economy improves.

 The director also agreed that the government should stop stabilizing price of cooking gas as it has to spend more than one billion baht a month to subsidize the cooking gas price.

bangkokpost.com

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## Mid

*Thai Cabinet extends free train, bus services*



*BANGKOK,* May 1 -- The Cabinet on Tuesday extended free  third-class train and non-air conditioned bus services to the low-income  Thai public for another five months to help reduce their cost of  living, and Prime Minister Yingluck Shinawatra convened a meeting with  economic ministers and other relevant agencies to deal with the rising  cost of living and ongoing inflation.

 Deputy Transport Minister Chatt Kuldiloke said that free rides on  third-class trains and regular (non air-con) buses will last through  Sept 30. The free transport measures ended April 30.

 To continue helping low-income earners, the free ride will cost the  government some Bt1.66 billion as compensation for Bangkok Mass Transit  Authority (BMTA) and State Railway of Thailand (SRT).

 The measures began in 2008 during the administration of the late former  prime minister Samak Sundaravej to assist low-income earners.

 Under the free transport measures, the BMTA will provide 800 buses per  day for free rides while the SRT will run 164 rail trips daily.

 Meanwhile, Ms Yingluck convened a meeting with economic ministers and  other relevant agencies in the afternoon to review the economic  situation and handle the rising cost of living, which has been affected  the consumers.

 The meeting was attended by Deputy Prime Minister/Finance Minister  Kittiratt Na-Ranong, Commerce Minister Boonsong Teriyapirom, PM's Office  Minister Niwatthamrong Bunsongphaisan, National Economic and Social  Development Board (NESDB) Secretary-General Arkom Termpitayapaisit and  Bank of Thailand Governor Prasarn Trairatvorakul.

 The premier assigned Mr Kittiratt and Mr Boonsong to seek solutions to  deal with rising prices of household and other consumer products.

 She also called for related agencies to reduce inflation attributed to  increasing energy prices as an urgent issue and mapping out measures to  resolve problems and assist consumers.

 Regarding Thailands inflation, Permanent Secretary for Commerce Yanyong  Puangrach on Tuesday announced that Thai inflation rose in April by  2.47 per cent year-on-year, the lowest level in 29 months. He projected  that overall 2012 inflation would grow within a range of 3.9 per cent.

mcot.net

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