Surapong to meet key economic agencies this week

Surapong said Monday that Suparut Kawatkul, permanent secretary for finance, was arranging the meeting, which is expected to take place this week.

Senior officials of BOT, Budget Bureau, National Economic and Social Development Board and Finance Ministry would attend the meeting.

The market is watching how the Finance Ministry and the central bank would coordinate macroeconomic policies. The ministry wants a progrowth policy while the central bank has put its focus on price stability.

Surapong, and Virabongsa Ramangkura, the chief economic adviser to Prime Minister Samak Sundaravej, had strongly objected to the central bank's rate hike to fight inflation. The starkly different stance has raised speculation that Tarisa might be sacked.

Surapong said the economic situation in the past six months would be discussed at the meeting. The meeting will also discuss the economic outlook for the next six months, he said.

Surapong said economic advisers would later meet the Cabinet to formulate policy.

He insisted he will not intervene in monetary policy. "I think the MPC [the central bank's Monetary Policy Committee] will decide on the rate based on information," Surapong said, in response to speculation that the MPC might raise the rate at the next meeting to show the central bank is independent from the government.

The market expects the central bank to leave its policy rate unchanged at 3.50 per cent during the MPC meeting on August 27. The recent slide in crude oil prices has decreased inflationary pressure to some extent. Economic conditions in developed countries have been worse than expected, threatening economic recession and adversely impacting Thailand's exports.

Somchai Sujjapongse, the Finance Ministry spokesman, said that government revenue last month rose 22.1 per cent year on year to Bt105.5 billion. High import of crude oil and natural gas contributed to high collection of valueadded tax. Transfers from state enterprises also increased more than previously estimated.

Government revenue in the first 10 months of the fiscal year October to July rose 9.7 per cent year on year to Bt1.23 trillion or 3.4 per cent higher than targeted.

In related development, Surapong said the government will organise an exhibition on megaproject investment from September 12 to 14. Foreign investors and fund mangers would be invited to participate. The public are also invited to the exhibition to be held at the Queen Sirikit National Convention Centre. The government plans to invest Bt 1.7 trillion over the next four years in mass transit, logistics, irrigation, energy, education and public health. Stateowned enterprises such as PTT will also lay out their investment plans.

The Finance Ministry will ask the Cabinet on August 19 for a Bt30 million budget for the exhibition.