Digit lottery money may be used

The government will invite the private sector to invest more in public infrastructure projects, while planning to use proceeds from the former digit-lottery sales to fund economic stimulus measures.

In addition, parliamentary approval will be sought today for the US$2-billion (Bt70.6 billion) offshore loan. The government will seek $1 billion from the World Bank, $500 million from the Asian Development Bank and $500 million from Japan's Bank for International Cooperation.

Finance Minister Korn Chatikavanij said private funds should account for as much as 18-19 per cent of the Bt1.4-trillion infrastructure investment programme for 2009 to 2011, instead of the 5 per cent previously earmarked.

Such an increase will lead to an injection of Bt300 billion in fresh funding over the next three years, during which the government hopes to invest heavily in infrastructure schemes under a public/private-sector partnership programme to stimulate the economy.

Transport and other schemes with good economic returns will be on offer for private investment, Korn said, adding that housing schemes for the national police force are another area of potential joint investment.

To cope with the sharp economic downturn, the government is also proposing a Royal Decree to utilise the Bt17-billion proceeds from previous sales of digit lotteries to finance its economic stimulus package.

Korn said he had consulted Deputy Finance Minister Pradit Pataraprasit, who oversees the Lottery Bureau, as well as the Council of State on this issue as the fund was previously deemed to be "illegal" money as the Lottery Act had been violated.

The money had come from sales of two- and three-digit lotteries. Korn said the proposed Royal Decree would earmark the use of this money during this fiscal year to create transparency.

He also insisted that the government would go ahead with its online lottery project under the Lottery Act.

Prime Minister Abhisit Vejjajiva earlier expressed reservations about this project, but Sangshidh Piriyarangsan, vice chairman of the National Economic and Social Advisory Council, supported it, arguing that otherwise underground lotteries would be the beneficiaries.

Meanwhile, gross domestic product could contract 3 per cent this year - against the earlier forecast of growth of 0-2 per cent - due to deterioration in the global economy, Korn said.

Without any stimulus measures, GDP could contract by as much as 8-9 per cent, which could push the number of unemployed to 2 million.

"A plunge in exports alone could lead to a 5-per-cent contraction in GDP. The government's mission is to alleviate the situation and explain this fact to the public. And to solve the problems, we need cooperation from the private sector and the general public," he said.