CABINET PUTS A HOLD ON FOREIGN BORROWING

       The Cabinet yesterday endorsed a Finance Ministry plan to delay a US$500-million (Bt17 billion) loan from the Asian Development Bank.
       It also suspended previously agreed borrowing from the World Bank and the Plan International Cooperation Agency.
       Ministers agreed domestic liquidity was sufficient to finance the latest stimulus package and that government revenue had shown some improvement.
       Finance Minister Korn Chatikavanij said domestic borrowing would also reduce pressure on the baht, which had strengthened against the US dollar in recent months.
       "I discussed the bill to approve borrowing of Bt400 billion with the prime minister, particularly senators' questions. We will ensure tranparency. Meanwhile, the planned foreign borrowing will be delayed, in line with the government's policy of tapping domestic funds and slowing the baht's appreciation," he said yesterday.
       The decision coincided with a Finance Ministry report that the government's revenue intake in the first 10 months of fiscal 2009 was Bt1.12 trillion, down Bt119 billion, or 9.6 per cent, from the same period last year. Last month alone, revenue reached Bt98.1 billion, down Bt9.85 billion, or 9.1 per cent, year on year.
       Still, ministry spokesman Ekniti Nitithanprapas said the outlook was better, particularly for value-added tax, import tariffs and auto excise taxes. The revenue shortfall, from Bt1.6 trillion in expenses for the fiscal year, is expected to narrow to Bt206 billion, from an original forecast of Bt280 billion.
       The Cabinet yesterday also delayed a decision on Bt6.8 billion worth of bonus payments for civil servants this fiscal year. Prime Minister Abhisit Vejjajiva said it remained unknown whether there would be any money left for bonuses and even if so, the propriety of any such payments would have to eb carefully considered.
       The Office of the Public Sector Development Commission also asked for a special allocation from the central 2010 budget to give to 1.5 million civil servants.
       Deputy Prime Minister Korbsak Sabhavasu earlier announced there would be no banuses in 2010 and that such payments in 2011 depended on economic conditions and government policy at the time.
       Meanwhile, the Mass Rapid Transit Authority of Thailand is expected to sign a deal for construction of the first section of the Purple Line electric-train route this month following Cabinet approval yesterday.
       Transport Minister Sophon Saram said after yesterday's meeting that the Cabinet approved the first contract, covering 12 kilometres of the elevated route, and acknowledged the proposed construction costs in the second and third contracts.
       "The first contract should be signed with CKTC Joint Venture this month," he said.
       Construction on the route is estimated at Bt32.4 billion.
       The first 12-kilometre section will cost Bt14.3 billion; the second contract for another 11km will entail Bt13.1 billion; and the third contract, for a maintenance centre and parking areas, will be for Bt4 billion.
       Another contract for rail installation will be for Bt4 billion.
       The Cabinet also approved criteria for maize and tapioca price quarantees, which will replace its pledging schemes.
       The guarantee schemes will be kicked off following farmer registration.