Of the total outstanding liabilities of Bt204.5 billion as of September 30, Bt101.76 billion was incurred collectively by a number of Thaksin's schemes: the rice-pledging programme operated by the Bank for Agriculture and Agricultural Cooperatives (BAAC); the Public Warehouse Organisation; the Village Fund programme operated by the Government Savings Bank and the BAAC; and the universal Bt30 healthcare scheme operated by the Public Health Ministry.

The rest of the public debts run up by the previous government - which this interim administration and future democratically elected governments must repay - are from programmes such as agricultural product price intervention, compensation to victims of floods and bird flu, and additional allowances to government schoolteachers.

There is no better evidence to show that Thaksin had manipulated people with his populist policies by giving them a lot of attractive entitlements as incentives to vote for his Thai Rak Thai Party. Most people are not aware that these costly entitlements that Thaksin showered on the rural masses - the main beneficiaries of his policies - will have to be paid for by all taxpayers, eventually. And that's exactly what the Surayud government is doing. The money set aside for repayment of these debts will take away from public expenditures meant for national development programmes in 2007 and beyond.

The Surayud government should be commended for being honest with the public about the importance of maintaining fiscal responsibility and paying off the liabilities from Thaksin's wasteful populist policies. This will have to be done within the next few years so that future generations of taxpayers will not be burdened by paying for the present generation's dubious entitlements.

People should be educated about Thaksin's irresponsibility and deception. They should know that he initiated new, costly public spending programmes without having properly worked out a sustainable financing scheme. They should know this is a grossly dishonest practice. During their five and a half years in power, Thaksin and his Thai Rak Thai Party had got the rural masses addicted to his populist policies. His handouts worked so well that the former prime minister continues to be popular among poor and marginalised rural people.

Thaksin also spent huge amounts of taxpayer money to buy the favour of the rural masses through the "extra-budgetary funds" which he dispensed at his discretion with little or no monitoring from relevant auditing agencies. That largely explains the enduring popularity of Thaksin in some quarters. That said, it must be made clear that spending public funds to help the poor and the marginalised disentangle themselves from the trap of poverty is not in itself a bad thing. Indeed it is the primary responsibility of any government to do just that.

But the way to do it must be based on the principles of sound governance, fiscal responsibility, well thought-out plans, good targeting, and stringent evaluation to ensure cost effectiveness and maximum efficiency. What was wrong with Thaksin's populist policies was that they were rife with corruption and they pandered to the unprincipled wants and needs of the beneficiaries. In many instances, cheap loans, such as those under the Village Fund, aimed to encourage villagers to develop entrepreneurial skills that would improve their livelihood. These loans were mistaken by the recipients for handouts, and were squandered on personal consumption instead of on profitable enterprise and community development projects that would raise their standard of living.

The government must implement a public education programme to explain to the people, particularly those who benefited from populist policies, why Thaksin's dishonest methods and ruthless manipulation are bad for the country. Next, the government must carefully evaluate Thaksin's policies and decide which should be continued, which should be reoriented and which should be scrapped.

There is no such thing as a free lunch.