PM Prayuth Chan-ocha is insisting that Thailand’s financial situation remains strong, despite the news yesterday that the military government has spent 85 percent of the country’s reserves since the coup.
The shocking figures revealed that the government has only THB75 billion in reserve, while they had THB495 billion only three years ago.
Prayuth spent the day responding to criticism of the country’s current finances and trying to assure detractors that government projects are going according to regulation and for public benefit.
Meanwhile, Finance Minister Apisak Tantiwong, who announced the surprising figures yesterday, also responded to criticism by noting that, if the government’s reserves are too high, the government will have to pay a higher interest rate, reported Thai News Bureau.
The minister hopes to amend legislation governing the management of financial reserves to allow the government to seek a short-term emergency loan only in an event of an emergency situation. The current law allows the government to take out an emergency loan with or without urgent justifications.
The minister also insisted that the new increase in tax on plane fuel was not due to a decline in government coffers, but to promote fair pricing.
Deputy PM Somkid Jatusripitak said that those spreading rumors about the government’s financial troubles just don’t understand how the government manages the reserves.
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