FPO:Public spending to boost Thai economy in 2015

BANGKOK, November 20 (TNA) - The Fiscal Policy Office (FPO), under the Ministry of Finance, says that spending by government agencies and state enterprises should be major forces to gear up the Thai economy next year. FPO Deputy Director-General Ekniti Nitithanprapas made the assessment at a seminar on the Thai economic and industrial outlook in 2015, held in Bangkok on Thursday. Ekniti reasoned that only 89 per cent of the total state budget in the 2014 fiscal year, which ended on September 30, 2014, had been disbursed due to past political problems; so, the disbursement of the remaining budget in the present 2015 fiscal year and spending of state enterprises should create considerable economic activities. The FPO deputy chief forecast that the Thai economy should, therefore, expand by 4 per cent year-on-year next year, also boosted by growing consumption in the private sector. Besides, oil prices are declining partly because of domestic energy price restructuring, which should strengthen people's purchasing power. The FPO deputy chief warned, however, that household debts which have caused installment burdens and lower prices of local farm products, including natural rubber, remain a risk factor of the national economic expansion. Meanwhile, the Federal of Thai Industries (FTI) reported that the Thai Industries Sentiment Index (TISI) rose to 87.5 in October 2014, after its fall in two previous months, as there were more orders for Thai products, border trade expanded and global oil prices were dropping. (TNA)