THAI CABINET APPROVES SEVEN PCT BUDGET INCREASE
The Thai Cabinet approved a seven pct
increase in the national budget for fiscal 1987/88 starting
next October, compared with a 6.2 pct increase for the current
year ending September, a government spokesman said.
    He told reporters the budget, to be presented to Parliament
by late next month or in early June, calls for spending of
243.5 billion baht against 227.5 billion this year.
    The new budget is intended to make Thailand's Gross
Domestic Product grow by at least five pct during the year
without compromising its conservative fiscal and monetary
policy, the spokesman said.
    "The budget is in line with our policy to stimulate the
economy and to achieve a stable growth while we continue
maintaining our current cautious fiscal policy," he said.
    The spokesman said the budget provides for a 9.6 pct
increase in fresh government investment expenditure to 39.8
billion baht, up from 36.3 billion this year.
    Government revenue is projected to grow 7.5 pct to 199.5
billion baht against 185.5 billion targetted for 1986/87.
    He said the budget contains a 44 billion baht deficit, or
about 3.4 pct of GDP, compared with 42 billion or 3.5 pct
planned for this year.  The deficit is required by Thai laws to
be financed by domestic borrowings.
    The finalised budget bill earmarks 59.8 billion baht, or
24.6 pct of total expenditure, for servicing the government's
domestic and foreign debt, up from 56 billion and a similar
24.6 pct this year.
 REUTER
