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| Thai PM Abhisit Vejjajiva | ||
Thailand's Prime Minister Abhisit Vejjajiva said Sunday that he plans to double government spending for a program that provides grants to rural villages, as part of a stimulus package aimed at reviving the country's ailing economy.
Abhisit, in a nationally televised address, also said he plans to step up the recruitment of college graduates for government jobs to offset rising unemployment and move ahead with plans to offer millions of low-income residents a one-time payment of 2,000 baht ($57.25).
"The fire is burning fiercely in the house, so we cannot be too economical on the water we use for putting out the blaze," he said.
Abhisit, who became prime minister in December, has made fixing the economy a priority. One of his first acts was to have his Cabinet approve a 115 billion baht ($3.3 billion) economic stimulus package earlier this week.
He said a portion of the stimulus package will go toward reviving and expanding a village initiative launched by former Prime Minister Thaksin Shinawatra who was ousted in a 2006 coup.
The popular program offered government grants to villages, which used the money for infrastructure projects like repairing roads and digging irrigation canals. But critics contend it was little more than effort to buy the loyalty of rural voters who supported Thaksin.
Thailand's export-driven economy has been hit by the global slowdown as well as months of political unrest last year that scared off foreign investors and tourists.
The cash handouts, which were announced Tuesday, have been blasted by critics who say it is a waste of money and a bid to win over skeptical rural voters.
Abhisit said the handouts would boost the buying power of poor consumers while the government employment scheme would ensure new graduates are not left idle.
"We will help new graduates to find jobs quickly," he said. "We will find work for them in administrative posts for schools and in helping police monitor illegal web sites."
He did not provide specifics on how many new graduates would be hired nor how much the government would spend on its village initiative.
The Bank of Thailand has estimated the country would lose 290 billion baht ($8.3 billion) as a result of the weeklong blockade in November of Bangkok's two main airports by protesters who called for the ouster of the previous government packed with Thaksin's allies. It said the shutdown of the airports would deter 3.4 million tourists from visiting the country.
Southeast Asia's second-largest economy is likely to grow as little 0.5 percent this year because of declining exports and weak domestic demand, the central bank said earlier this month.
By Michael Casey (AP)
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