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Big central fund includes agency costs: Sommai

Deputy Finance Minister Sommai Phasee yesterday defended the lavish central fund proposed in the 2008 budget appropriation bill, saying it was the expenses of other government agencies that made it look large.



Sommai said he had already informed the committee set up by the National Legislative Assembly to vet the bill that these expenditures actually belong to other government agencies but they are not directly included in their own budget.

If the NLA wants to change this, it could be done easily, he said. However, it may affect the role of the Budget Bureau, which is directly responsible for the central fund, he added.

A Budget Bureau source, however, said the central fund was convenient because the prime minister, who directly supervises the bureau, has immediate access to adequate funds in case of emergency or urgent projects.

The government is set to spend Bt1.66 trillion in fiscal 2008, of which Bt245.77 billion is earmarked for the central fund. Breaking down the central fund, the largest item of Bt73.15 billion is for the state pension fund, followed by an emergency fund of Bt40 billion.

Deputy Prime Minister Kosit Panpiemras said on Wednesday the emergency fund was not large compared with total planned expenditures.

The NLA passed the bill in its first reading on Wednesday.

Other items are medical bills for state officials, which are estimated at Bt38.7 billion.

Several lawmakers predicted that actual medical costs would be higher than this, as that was the case in the current budget.

Social projects aimed at promoting the participation of people in their rural development will get Bt15 billion, prompting alarm from some legislators over whether the government would waste this budget.

Wichit Chaitrong

The Nation


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