May 2013 : Two and a half trillion budget passed first reading GDP in 2013 lower than expected Interest rate reduced by 0.25% Public debt increased Foreign exchange reserves increased Hundred and sixty seven million to help northern farmers Diesel tax waiver re-extended First repayment to BAAC from rice pledging Warnings on water management program Constitutional Court to rule over Abhisit's qualification Amendment to constitutional Article 68 endorsed Former NSC chief to regain position Phue Thai and Democrat to run in Don Muang by-election Twenty thousand disapproved PM 's views Korkaew bailed Yingluck 31st most influential woman Online comments on human rights draft plan More widows and orphans in rural south Two and a half trillion budget passed first reading On 31st May 2013, the House of Representatives passed a 2.525 trillion Budget Bill for 2014 with 292 to 155 votes, 27 abstentions and 4 no votes. An extraordinary panel of 63 members was appointed to deliberate the Bill within 30 days before submitting it for the second reading. The 2014 budget will be in deficit since only 2.275 trillion are expected from public revenues and the balance of 0.250 trillion from loans. Actual expenditures by state agencies, state enterprises and other agencies are at 2.511 trillion and 0.134trillion being repayable into the Treasury reserves fund. Public expenditures can be itemised as: Regular expenditures 2.017 trillion or 79.9% of the budget, Treasury reserves repayment 0.0134 trillion or 0.5%, Public investment 0.441 trillion or 17.5%, Repayment for loans 0.0528 trillion or 2.1%, and From total revenue of 2.384 trillion, 0.109 trillion will be allocated to local authorities and 2.275 trillion to the central government. The country's financial position and monetary policy are presently sound, judging from its current account surplus. Foreign exchange reserves as of end-April 2013 stood at US$178 billion equivalent to three times the level of its short-term debt; and Treasury cash balance as of 20th May 2013 stood at 250 billion baht. GDP in 2013 lower than expected The National Economic and Social Development Board reduced projected GDP growth for 2013 from 4.5-5.5% to 4.2-5.2% due to first quarter growth being lower than expected, at only 5.3%. The Thai Baht strengthened from 31 to 29 baht against the USD making a devaluation of ฿180 billion in exports. Interest rate reduced by 0.25% On 29th May, the Monetary Policy Committee (MPC) resolved to reduce interest rate by 0.25%, or from 2.75% to 2.50% per annum, effective immediately. MPC Chair and Governor of the Bank of Thailand, Prasarn Triratworakul, reaffirmed that 0.25% was appropriate as a bigger reduction could pose risks to the overall economy and lead to misinterpretation by the money market. Public debt increased The Public Debt Management Office disclosed that at the end of March 2013, public debt has increased from the previous month by 0.473 trillion to 5.12 trillion, equivalent to 44.16% of GDP.The debt can be divided into 3.55 trillion government's debt, 1.06 trillion non-financial state enterprises, 0.494 trillion financial government guaranteed state enterprises and 0.055 trillion other state agencies. The increases are from financial government guaranteed state enterprises and from the government at 0.056trillion and 826 million respectively. Foreign exchange reserves increased On 31st May, the Bank of Thailand stated that foreign exchange reserves on 23rd May increased to USD 1.757 billion or ฿ 52.71 billion. This is an increase of USD 1.300 billion or ฿ 39 billion. Hundred and sixty seven million to help northern farmers On 22nd May the Cabinet approved a budget of 167 million to purchase 800 rai of land in Chiangmai and Lamphun provinces for members of the People's Movement for a Just Society (Pmove). The money will be drawn from the Budget for the Mankong( “secured”) Housing Project and the Community Organization Development Institute of the Social Development and Human Security Ministry will make the purchase. Diesel tax waiver re-extended On 21st May, the Cabinet resolved to extend the waiver on deisel tax for another 30 days or until 30th June. Energy Minister, Pongsak Rattapongpaisarn, reported that there is a daily cashflow of 200 million into the petroleum fund. Since the fund is currently 3 billion in deficit, he expects it to be cleared within 15 days. First repayment to BAAC from rice pledging The Cabinet approved the National Rice Policy Committee’s proposal to use the 90 billion income from the sale of rice in the previous season of the pledging program to repay the Bank of Agriculture and Agricultural Cooperation ( BAAC). This will be the first repayment of a total debt of 410 billion. The Cabinet also approved a 390 billion budget for the purchase of the 2012/2013 crops. Fourteen million tons of rice had been pledged in the first round of the 2012/2013 planting year. It is estimated that 7 million tons would be pledged in the second, but so far only 3 million tons had been pledged. Warnings on water management program The National Anti Corruption Commission (NACC) exercised its authority according to Article 19 of the Anti Corruption Act by submitting recommendations to the Prime Minister that there are many vulnerable points in the water management program. NACC suggested that the program should be adjusted to become more efficient and more transparent otherwise it could lead to irregularities and corruption in implementation. Constitutional Court to rule over Abhisit's qualification The Constitutional Court decided by 7:2 to accept a request to rule over Democrat Party leader, Abhisit Vejjajiva’s qualification as a member of the House of Representatives. On 8th November 2012, the Defense Minister stripped Abhisit of his military rank of acting lieutenant and delisted his name from military reserve unit. Abhisit acquired the rank while serving as a lecturer at the Military School after graduating from Oxford University and was enlisted in the reserve unit after he resigned his position as lecturer. If the court finds him guilty, Abhisit could be nullified from his membership of the House and faces a political ban. Amendment to Constitutional Article 68 endorsed The Constitutional Amendment Panel of 22 members unanimously voted to amend Article 68 concerning the Prosecutor-General’s power to investigate actions that might lead to an overthrow of the democratic government headed by the monarchy. The panel will organize hearings from the 203 people who proposed the amendments and deliberation will be held 5th-7th July 2013. Former NSC chief to regain position On 31st May, the Central Administrative Court ruled in favour of Tawil Pleansri, former Secretary-General of the National Security Council that the order to move him to the Office of the Prime Minister, on 7th September 2011, was unjust and he should return to his former role as soon as possible. Tawil brought the case against the Prime Minister who endorsed the ministerial order. She could appeal this decision within 30 days. Phue Thai and Democrat to run in Don Muang by-election Followingthe purging and 5-year ban of former Phue Thai MP, Karun Hosakul, a by-election in Bangkok constituency 12 (Don Muang) is called for16th June 2013. While the Democrat Party is sending the same candidate, Thankhul Jitt-itsara, to run in the election, Phue Thai party-list MP, Yuranan Pamornmontri, resigned from the party-list in order to run in this by-election. The Election Section of the Supreme Court found Karun guilty of slandering his Democrat opponent, Thankhul Jitt-itsara, while delivering a campaign speech, on 3rd July 2011. Twenty thousand disapproved PM 's views On 16th May 2013, a Thai Spring group led by former Deputy Police Chief, Police General Vasit Dejkunjorn, former Senator Kaewsun Atibodhi and his twin Kwansuang, launched a protest against the government’s populist policies that led to disaster and corruption under the "Thaksin regime". Their activities will be held online on a website www.change.org/users/thaispring in which more than 20,000 people have expressed their disapproval of the Prime Minister’s controversial speech in Mongolia on 29th April. Korkaew bailed On 10th May 2013, following the Election Commission’s ruling that Korkaew Pikulthong is qualifying as a member of the House of Representatives, the Court granted bail and he was released from Lak Si prison after a bond of 600,000 was posted to Court. Yingluck 31st most influential woman Forbes magazine published a list of top 100 most influential women in the world with German Chancellor, Angela Merkel, at the top. Brazilian President, Dilma Rousseff, Melinda Gates and Michelle Obama followed. The fifth position goes to former US Secretary of State, Hillary Clinton, and sixth and seventh to Facebook CEO, Sheryl Sandberg and IMF chief, Christine Lagarde. Myanmar opposition party leader, Aung San Suu Kyi‬, is29th and Thailand’s Prime Minister, 31st. Yingluck has dropped from 29th last year.‬ Online comments on human rights draft plan The Justice Ministry’s Department of Rights and Liberties Protection has launched an online hearing on the third draft plan on human rights through its website www.ripd.moj.or.th. The plan focuses on 10 topics and 14 target groups who are vulnerable to human rights abuses. The 10 topics are: 1. Public health 2. Education 3. Culture 4. Economy 5. Natural resources, environment and habitat 6. Communication and technologies 7. Transportation 8. Politics and governance 9. Justice10. Social security. The target groups are: 1. Defendants and prisoners 2. Former prisoners 3. Victims/those who suffered damage 4. HIV infectious 5. Laborers 6. Financially disadvantaged 7. Agricultural workers 8. Elderly 9. Children and young people 10. Women 11. Disable 12. Victims from violence 13. Stateless people, and 14.Those with gender issues. More widows and orphans in rural south Amnesty International Thailand disclosed an annual report on human rights in Thailand that violence in the southernmost provinces has caused an increase in the numbers of widows and orphans. It estimated that there are 3,000 widows and 6,000 orphans living in remote and inaccessible areas.