April 2013 : Hearing of Phra Viharn Case Commenced Thai-Cambodia delivered first oral argument on Pha Viharn Case PM first political point of views Amnesty bill promoted to urgent agenda Constituional amendment on senate election BRN's proposals not on agenda EC ruled Korkaew qualifies MP Pongsapat reclaims anti- drug cheif position Cost of living increases Public revenue missed target Bond issues to cover deficit budget 3,961 million baht for free rail and bus ride Moody's forcast economic growth Reserve fund declined USD 800 million Measures to help SMEs Heavy expenditures cause deficit budget Civil servants can return to pension system First hearing of Phra Viharn started On 15th April, the International Court of Justice (ICJ) or World Court commenced a first hearing on the Phra Viharn. The case was rebrought to Court by Cambodia asking for an interpretation of the 1962 ruling and claiming that the 4.2 sq.km area adjacent to the temple belongs to Cambodia in regards to the 1:200,000 scale map. Cambodia Deputy Minister and Foreign Minister Hor Nam Hong was the first to give oral arguement followed by Cambodia legal team. Later on 22nd April, Thai Ambassador to the Netherland Weerachai Palasai delivered an argument on behalf of the Thai government. His openning speech was followed by the Thai legal team; Prof. James Crawford, Prof. Donal McRae, Prof. Alain Pellet and his assistant Alina Miron. And after all arguments were delivered, the ICJ judge gave questions to Thai and Cambodian teams to answer in the second round of the oral argument, with written answers due on April 26 for Cambodia and on May 3 for Thailand. PM first political point of views On 29th April, Prime Minister Yingluck Shinawatra delivered a speech at the Democracy Forum in Ulan Bator, Mongolia Republic. She clearly stated her preference on the election of senators to the appointed ones. She also commented that the independent agencies are over-function in regards to their duty and authority. These were her first political expression since came to power and there are some significance towards the constitutional amendment currently undertaking in the parliament. The speech incited criticism among some Thais on its content and appropriateness. Amnesty bill promoted to urgent agenda On 18th April, the House of Representatives approved a proposal, submitted by Phue Thai MP Worachai Hemma, to promote the Amnesty draft bill, from previous agenda, scheduled for reading on the next House session, 1st August, to an urgant and top reading . The proposal was supported by priority for consideration by a majority of 283 votes, against 56. Constitution amendment on senate election On 24th April, the Constitutional Amendment panel majority Phue Thai MPs, voted to remove the phrase that prohibit family members of MPs; their parents, spouse and siblings, to run a senate election. The panel also remove the phrase on barring former local politicians and administrations, for a period of 5 years, before running the senate election, making them able to run the election right after leaving offices. They reasoned these two phrases were against political rights. BRN proposals not on agenda On 29th April, Thai delegatation leader, National Security Council Secretary General Lt. Gen. Paradon Pattanathabutr disclosed after the second peace talk with the separatist representative, National Revolutionary Front known by its Thai acronym- BRN that the separatist's proposals were not discussed during the meeting. He assured that he did not even accept that those proposals will be put on the dialogue agenda. Previously, BRN leader Hassan Toryip demanded, in a vedio clip published in YouTube, that : Malaysian goverment should become a " mediator" in every dialogue between the two parties. BRN shall be a sole agent to represent all Malays living in the southernmost provinces. Representatives from ASEAN countries, Organization of the Islamic Conference and NGOs will be allowed to observe the dialogue. All detained offenders and arrest warrants must be unconditionally freed and cancelled. BRN shall be recognized as the Patani liberation agent, not a separatist movement. EC ruled Korkaew still qaulifies MP On 17th April, the 5 members of the Election Commission unanimousely ruled Korkaew Pikulthong is qualified as the House of Reps membership, reasoning he was not being detained when the election took place, his case is in court precess and no ruling was made. Korkaew' s qualification was brought to the EC by former senator Ruengkrai Leekitwattana due to Korkaew's bail was revoked by the Criminal Court on 30 November 2012. Following the revocation, he was sent for detain at Lak Si prison. Korkaew was trialed on inciting unrest and breaching bail conditions. Pongsapat reclaimed Anti-drug chief On 30th April, the Cabinet resolved Pol. Gen. Pongsapat Pongcharoen to return to a Secretary General of the Office of the Narcotics Control Board (ONCB) . Deputy police chief Pongsapat resigned to represent Phue Thai party in BMA governor election on 3rd March 2013. Following his lost to Democrat candidate Sukumbhan Paripatra, he was reappointed to the same position of deputy police chief and ONCB secretary general. Cost of living increases It is anticipated that cost of living is increasing after the Bangkok Transit System ( BTS) announced its plan to raise a fee from 15-40 baht per ride to 15-42 baht, to be effective on 1st June 2013. The Energy Ministry also plans to increase cooking gas price at 6 baht per kilo, or from 18.13 baht to 24.82 baht per kilo. The price will be escalating at 0.50 baht per kilo monthly until reaching the target. Apart from these, other agencies, such as the Expressway Authority of Thailand and the Marine Department are considering to increase the tollway and the boat ride fees . Tollway will be increased from 45 to 50 baht whilst boat passengers will pay an additional of 2 baht per ride. Public revenue missed target Director-General of the Customs Department Mrs. Benja Louichareon disclosed during the last 2 months Thai baht went stronger, making a devalue in all import goods that significantly affected tax collection and making customs tax collection 10% lower than its target. Director of the Revenue Department Satit Rangasiri also unvealed the Department's lost was higher than anticipated. Revenue from income tax dropped at 12 billion baht against the anticipated 7 billion baht due to the new regulation allowing husbands and wives to pay income tax separately. Moreover, the reduction of corporate tax to 20% added another lost of 10 billion baht. He said the Department must work harder to reach the 1.77 trillion baht revenue target. Heavy expenditures caused deficit budget The Fiscal Policy Office announced public income during the first half of the 2013 fiscal year reached 957 billion baht, which was 145 billion baht or 17.9 % higher than the same period last year. However, public expenditures was 1.37 trillion baht, which was 102 billion baht or 8.1% higher than last year, making a 414 billion deficit in the fiscal budget. When an extra- budgetary deficit of 115 billion baht was added, a total cash deficit is 529 billion baht. The government has sought a new loan of 163 billion baht to cover those deficit, making a total deficit reduced to 366 billion baht. Currently, the treasury reserve is 194 billion baht which is 160.5% higher than last year. Reserved Fund dropped USD 800 million The Bank of Thailand disclosed that on 19th April, reserved fund was USD 176.8 billion or 5.073 trillion baht which was a decrease of USD 800 million or 23.4 billion baht against USD 177.6 million or 5.157 trillion baht of last week. This was a culculation from 29.25 baht to 1 USD. Bond issues to cover budget deficit The Finance Ministry is issuing a 4000 million baht bond to cover some deficit in 2013 fiscal budget. Payback period is 3 years and fixed interest rate is 3.5% flatted. Minimum purchase is 1,000 baht ( 1 unit) and maximum is 2,000,000 baht ( 2,000 units). 3,961 million baht for free rail-bus ride On 30th April, the cabinet resolved the Finance Ministry proposal to allocate a 3,961 million baht budget, divided into a 2,436 and 1,524 million, to the State Railway of Thailand and the Bangkok Mass Transit Authority respectively for their provisional of free rail and bus ride. Previously, the Cabinet resolved free rail and bus ride to re- extend until September 2013. Moody's forcast Thai economy growth On 25th April, an economic rating company Moody's Investors Service published a report rated Thai local and foreign government bonds at Baa1 ranking. The company also forcast Thai economy in 2013 and 2014 will grow at 5%. Civil servants can return to pension system On 23rd April, the Cabinet resolved state officials working before 27th March 1997 can return to a monthly pension system. It is expected that 733,000 civil servants currently under the Government Pension Fund program, will opt for this pension benefit. Measures to help SMEs On 23 rd April, the Cabinet resolved 4 measures to ease the SMEs burden from the 300 baht minimum wage. They are: A waive of import tariff for machinery and corporate tax for 3 years. A waive of renewal fees on permits and privilege rights for electronic equipments in 2013 and 2014. A waive of annual factory charges for 3 years, or from 1st October 2013 until 30th September 2016. Provisional of co-investment fund on machinery development.