Yingluck Risks Farmer Ire to Curb Fiscal Burden: Southeast Asia
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Thai Prime Minister Yingluck Shinawatra risks a backlash from farmers who helped put her in power after cutting guaranteed rice prices following criticism that the program put the country’s finances at risk.
The Cabinet on June 19 approved a 20 percent reduction in rice-purchase prices to help stem losses from the program that the government estimates at about 137 billion baht ($4.4 billion) last year. Moody’s Investors Service said on June 3 the subsidies hamper Thailand’s goal of achieving a balanced budget by 2017 and are negative for the nation’s sovereign ratings.