(File photo)A new monetary and fiscal discipline act took effect on Friday with a section specifically prohibiting the government from causing long-term damage to the economy and the public through populist projects. The Royal Gazette announcement said the law was necessary to ensure monetary and fiscal discipline and stability. Of the 87 sections, section 9 requires the cabinet to maintain strict discipline in handling of monetary matters, fiscal policies, budgets, revenues, spending and borrowing. The rice scheme was initiated by the Yingluck government to fulfil the Pheu Thai Party’s 2011 general election campaign promise. The Yingluck government directly borrowed 90 billion baht from the bank and secured an additional 410 billion baht through the bank issuing bonds to finance the rice policy.

Source: Bangkok Post April 20, 2018 08:15 UTC