Thai coup leader sets out economic priorities: Rice and budget

Thai coup leader sets out economic priorities: Rice and budget

BANGKOK - Thailand's ruling military laid out its economic priorities on Sunday, telling financial officials from the public and private sectors that it wanted to quickly pay farmers money owed under a failed subsidy scheme and work out a budget for 2015.

The army has consolidated its power since ousting the government on Thursday, detaining scores of politicians and activists whose rivalry has bedevilled the country for years, and trying to stamp out criticism with censorship and a ban on protests that an increasing number of people have defied.

On Sunday, the focus was on fixing an economy that even before the coup was stumbling into recession. "The economy needs to recover. If there is something wrong, we have to find quick solutions," Thawatchai Yongkittikul, secretary general of the Thai Bankers' Association, told reporters, citing coup leader General Prayuth Chan-ocha, who summoned up to 60 officials to the meeting. "The burning issues that need to be solved are the rice buying scheme and the budget plan for the 2015 fiscal year,"Thawatchai said.

Southeast Asia's second-largest economy shrank 2.1 per cent in the first quarter of the year and there is little prospect of a quick improvement.

People are not spending, government investment has stalled and consumer sentiment fell to a 12-year low in the months before the coup.

Many countries have issued travel warnings for Thailand, which was already expecting the lowest number of foreign visitors in five years in 2014. Tourism accounts for about 10 per cent of the economy.

On top of that, a huge problem for the last government of Yingluck Shinawatra was a failed rice-subsidy scheme, a major policy in a populist electoral platform that brought her to power in 2011.

The scheme was meant to cement rural support for Yingluck and her self-exiled brother, deposed former Prime Minister Thaksin Shinawatra.

But the scheme was criticised by opponents in the Bangkok middle class and royalist establishment who said it was riddled with corruption and was a cynical bid by the Shinawatras to lock in electoral success.

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