December 17, 2013, at 0930hrs at the Thai Army Club, Vibhavadi Rangsit Road, Bangkok, Prime Minister and Defense Minister Yingluck Shinawatra chaired the Cabinet meeting.
After the meeting, Government Spokesperson Teerat Ratanasevi, and Deputy Government Spokespersons Lieutenant Sunisa Lertpakkawat, Mr. Chalitrat Chandrubeksa held a press conference to reveal following outcomes of the Cabinet meeting. Gist as follows:
The Cabinet agreed with proposal of the Election Commission to request for budget for expenses related to the implementation of general election of members of House of Representatives (dissolution of parliament) for the total amount of 3,885,006,500 Baht. Details as follows:
1. Direct Expenses of the Election Commission, for the total amount of 3,231,918,300 Baht.
2. Expenses of 18 government offices and state enterprises that in total amount of 653,088,200 Baht.
1) Government Public Relations Department 20,424,000 Baht
2) Ministry of Foreign Affairs 45,000,000 Baht
3) Royal Thai Armed Forces 1,000,000 Baht
4) Technology and Communication Center 386,820 Baht5) 3 offices of Department of Provincial Administration
- Bureau of Registration Administration 141,661,300 Baht
- Provincial Administration Bureau 10,290,000 Baht
- Internal Security Affairs Bureau 3,661,000 Baht
6) Community Development Department 7,000,000 Baht
7) Southern Border Province Administration Center 2,000,000 Baht
8) Ministry of Labor 5,000,000 Baht
9) Ministry of Education 12,000,000 Baht
10) Ministry of Public Health 5,000,000 Baht
11) Royal Thai Police Headquarters 95,636,700 Baht
12) Bangkok Metropolitan Administration 25,000,000 Baht
13) Provincial Electricity Authority 14,500,000 Baht
14) Metropolitan Electricity Authority 4,125,200 Baht
15) TOT Public Company Limited 49,993,075 Baht
16) Thai Post Company Limited 210,410,105 Baht
2. Title: Thai economic outlook in October and economic trends of 2013 and 2014The Cabinet acknowledged report on Thai economic outlook in October and economic trends of 2013 and 2014 proposed by office of the National Economic and Social Development Board (NESDB). Gist as follows:
1. Thai economic outlook in October
1.1 Thai economic outlook in October comparing to the previous month: Improving important economic indicators (seasonally adjusted) indicates slow economic recovery, particularly increasing private consumption index, export and agricultural production. However, industrial production decreased while tourism maintained.
1.2 Thai economy in October comparing to October 2012
Important economic indicators in both expenditure and production decreased. Household expenditure is improved. Private investment index decreased because the import of capital products in the previous month was high. Importation slightly decreased. Industrial production index constantly decreased. Agricultural production index increased while tourism slowed down. Economic stability was satisfactory as inflation rate slightly increased, unemployment rate was low and balance of trade and current account were in surplus.
1.2.1 Household expenditure improved in October 2013. Private consumption index slightly decreased by 0.03 per cent which is considered an improvement comparing to the 2.1 per cent decrease in the third quarter. Consumer confidence index in October decreased, which is a 7-month consecutive decrease, at 66.6 from highest level at 75.0 in March.
1.2.2 Private investment index decreased due to high import of capital products in the same month of previous year. Private investment index in October decreased by 4.9 per cent compared to 3.6 per cent reduction in September. Importation of capital products decreased by 13.5 per cent, a constant decrease from 10.8 and 9.3 per cent reduction in second and third quarter respectively. This indicates reduction of driving forces in machinery investment and deceleration in construction investment.
1.2.3 Export slightly decreased. In October, 2013, export’s value is 19,038 million US dollar (594,275 million Baht), a 0.5 per cent decrease compared to 1.9 and 1.8 per cent decrease in second and third quarter respectively.
1.2.4 Industrial production index constantly decreased. In October, industrial production index continues to decrease by 4.0 per cent, a constant decrease from 4.9 and 3.6 in the second and third quarter respectively.
1.2.5 Agricultural production index increased. In October, 2013, agricultural production index increased by 5.3 per cent as a result of early reaping of in-season rice production due to climate change, rubber and livestock production which increased by 40.8, 4.5 and 1.8 per cent respectively.
1.2.6 Tourism decelerated. There were 2.4 million of foreign tourists in November, 2013, which is 11.9 per cent increase and a deceleration compared to the previous month as there was a decrease of tourists from Scandinavia and Japan.
1.3 Economic stability is satisfactory. Inflation rate slightly increased. Unemployment rate was at low level. Current account balance was at surplus due to surplus of both trade and service balances.
1.3.1 Domestic economic stability General inflation rate in October is 1.5 per cent, which is an increase from 1.4 per cent rate in September.
1.3.2 Foreign economic stability Current account balance is at surplus due to surplus of both trade and service balances. The 172,087 million US dollar foreign exchange reserves at end of October are considered a decrease from 172,286 million US dollar one of previous month.
1.4 Fiscal outlook: Government’s net income in October is higher than that of the same month of the previous year. However, disbursement of annual budget and state enterprise’s capital budget decreased. Public debt at the end of September is 5,450,560.0 million Baht or 45.5 per cent of gross domestic production.
1.5 Financial outlook: In October, expansion of commercial banks’ credits and savings decelerated. Baht value was slightly strong. Capital outflow was due to Thai investors’ investment abroad. Policy interest rate is also reduced in November.
2. Global economic outlook: Global economy in the third quarter improves from the first half of the year. US economy expands as a result of the expansion of private sector’s demand in the country. EU economy slowly recovers from economic recession, while Japanese economy accelerates due to its economic stimulus measures. Chinese economy expands at a satisfactory rate.
3. Thai economic trend in 2013 and 2014 Thai economy in 2013 is expected to expand at 3.0 per cent. Average inflation rate for this year is at 2.4 per cent and current account balance is at deficit by 0.9 per cent of the GDP. Thai economy in 2014 is expected to expand by 4.0-5.0 per cent. Average inflation rate for 2014 is at 2.1-3.1 per cent and current account balance is at deficit by 0.6 per cent of the GDP.
--Cabinet Meeting (Yingluck Shinawatra) December 17, 2013--