The special meeting will provide new Finance Minister Chalongphob Sussangkarn the chance to review the budget proposals of his predecessor Pridiyathorn Devakula, who resigned nearly two weeks ago.

The Cabinet had passed the budget just late last month.

On Monday, Chalongphob said that with the right timing and planning, deficits can be run without affecting fiscal stability, but didn't refer specifically to the 2008 budget.

"The new finance minister has the authority to adjust the size of the budget. It is something

that is due to be discussed on Saturday," Kosit told reporters after the weekly Cabinet meeting.

The budget approved last month for fiscal 2008, which starts on October 1, plans expenditure of Bt1.635 trillion and revenues of Bt1.515 trillion, leaving a deficit of Bt120 billion, which is down from the planned deficit of Bt146 billion in this fiscal year.

The draft budget bill will be refined and resubmitted to the Cabinet on May 22 before it is tabled with the National Legislative Assembly.

A source said the Finance Ministry would demand state enterprises raise their contributions to the state coffers to Bt90 billion, from the previous target of Bt72.65 billion, as major tax agencies are likely to miss their collection targets.

The Government Savings Bank, Government Lottery Office, TOT Corp and CAT Telecom show the highest potential for sharing more with the government, the source said.

The Revenue Department is expected to fall Bt8 billion short of its Bt1.14 trillion target, due largely to the economic slowdown, while the Excise Department had to revise its target down by Bt10 billion after the government abandoned telecommunications taxes.

The government set expenditure for the 2007 fiscal year at Bt1.57 trillion and a fiscal deficit at 1.7 per cent of gross domestic product.

In the first five months of the current fiscal year, from October to February, the government took in Bt506.68 billion, only Bt3.23 billion above target, and the economy is still dragging.

The ministry is unlikely to increase its planned budget for the 2008 fiscal year, which has been set at Bt1.635 trillion, the source forecast.

Some have speculated that Chalongphob might decide to increase public spending for 2008 in order to help drive economic growth.

Meanwhile, Chalongphob said he has appointed Deunden Nikomborirak, a strong advocate of a liberal Foreign Business Act, as his secretary.

Wichit Chaitrong 

The Nation