Banharn criticises Democrat over budget allocations

"I want to say frankly that I don't agree with the lopsided budgetary allocation and that I don't see how the stimulus package can become a success," he said.

Banharn reminded the Democrats that he had already advised them to be a generous coalition leader by ensuring a fair allocation of funds in order to ensure that the coalition alliance would stay intact.

He said he offered his advice back in December when the Democrats sought and received his blessing for the Chart Thai Pattana Party to join the coalition.

He complained that although the tourism industry held the key to revitalising the sagging economy, the government allocated a mere Bt500 million for projects supervised by Chart Thai Pattana.

He said the Democrats appeared unfair in earmarking just Bt2 billion for stimulus measures under the Agriculture Ministry and at the same time allocating massive funds for cash hand-outs to those earning less than Bt15,000 per month.

The focus should be on improving farm productivity instead of handing out cash which the people might decide to save rather than spend as the government had hoped for, he said.

Prime Minister Abhisit Vejjajiva said he highly valued Banharn's remarks. He said, however, that the stimulus package was not based on consideration of how the funds should be distributed among the coalition partners.

The spending was designed to cushion the impact of the global economic slowdown, he said.

"I always have a high regard about Banharn's advice but at issue is not how to spread the money around but how to overcome the economic slowdown," he said.

He said he would find time to have a one-on-one meeting with Banharn in order to dispel doubts on the way the budget was allocated.

He insisted his government did not overlook the importance of two key ministries, agriculture and tourism.

It so happened that the Agriculture Ministry had disbursed about 10 per cent of its annual budget destined for farming and water resources development, he said. The ministry still had a lot of unused funds, and that was the reason why it received a smaller share of supplementary budget at the mid-year allocation.

In regard to the promotion of tourism, the government pushed for a comprehensive package to attract visitors and not just a boosting of the budget for the Tourism and Sports Ministry, he said.

He ruled out speculation about the coalition rift because of uneven budget slices earmarked for the coalition partners.

Deputy Prime Minister Suthep Thaugsuban said the coalition partners had vetted and approved the mid-year allocation ahead of the Cabinet review.

Suthep said he was confident Banharn would not rock the coalition once he learned of the justification behind the stimulus package. He confirmed that Chart Thai Pattana did not object to the spending plan for handing out cash to low-income earners.

Deputy Prime Minister Sanan Kachornprasart said Banharn had aired his individual opinion which was not meant to impact on the ties between the main coalition party and his Chart Thai Pattana party.