The government is planning to reduce the budget deficit for 2014 to around 225 billion baht, or only 2% of gross domestic product, to boost investor confidence, Finance Minister Kittiratt Na-Ranong said on Friday.
The budget deficit estimates would substantially drop from 400 billion baht in 2011 and 2012. The budget deficit for 2012 was actually set at 350 billion baht but due to the great flood late last year the government had spent an additional unbudgeted 54 billion baht to offset flood damage, he said.
The government expected the 2% targeted budget deficit in 2014 would help restore confidence of both Thai and foreign investors. The deficit reduction in 2014 would equal one-fourth of the 300 billion baht budget deficit set for next year, Mr Kittiratt said.
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