Speaking at the 45th anniversary of the office, which has traditionally been the agency guarding sound fiscal and economic policy, Pridiyathorn urged its officials to do their duty and have the courage to resist risky fiscal policies and to restore the public's faith in the office after serving "the populist policies of the past few years".

In front of hundreds of finance officials, Pridiyathorn said: "Over the past three or four years, we have lost many points because officials didn't have the courage to stand up against risky fiscal policies initiated by politicians who wasted public funds and posed a risk in the long run, like they caused trouble in Latin America."

Although he did not name specific policies, the Fiscal Policy Office and the Finance Ministry were known to support ousted prime minister Thaksin Shinawatra's policies such as the planned 10 mass-transit lines.

Observers have also been criticising the ministry over the misuse of funds such as the government lottery and the allocation of state budgets to support risky projects such as special banks and state enterprises.

The Thaksin government used four key economic agencies to support its policies - the National Economic and Social Development Board, the Budget Bureau, the Fiscal Policy Office and the Bank of Thailand.

When Pridiyathorn was governor of the central bank, the bank released several reports about the rise in household borrowing to warn the public of the danger of the increased public debt because of populist policies.

Pridiyathorn said: "I am sympathetic to the officials. Everyone has a family to take care of. You are underpaid, but we are the last frontier. We have to do it. We need to use the art of communication to not make politicians angry."

He said 25 to 30 years ago the Finance Ministry, along with the central bank, had been seen as two pillars guarding the country's sound fiscal and prudent monetary policies.

Dr Puey Ungpakorn, the most respected Bank of Thailand governor ever, created the Fiscal Policy Office with responsibilities for fiscal research, advocating sound ideas, and monitoring fiscal policies.

Pridiyathorn said the Fiscal Policy Office is the last frontier and it has to do its duty honestly to protect the interests of the country.

"You may not succeed in opposing policies initiated by politicians, but you have to establish transparency rules to monitor the implications of fiscal and quasi-fiscal activities, and you have to raise the issues with the public," said Pridiyathorn, who received bursts of loud applause from junior ministry officials as he spoke.

Pridiyathorn urged the officials to take a cautious look at the government's spending and the quasi-fiscal activities implemented by state-owned banks and some state enterprises. He said the officials should set clear rules to ensure transparency.

"In the eyes of the public, we have fallen way behind, but it's not too late to fix it," he said.

Pridiyathorn said officials should always think of Puey's statement: "If you work without worrying about how to keep power, you always make the right decision."

Wichit Chaitrong

The Nation