Economy, Role of Government
conservative policies, rare achievement, key infrastructure, price stability, government surplus
Thai governments, including unelected military regimes, have in general worked to ensure price stability while promoting economic growth. Other than in some key infrastructure and energy sectors, the government has not made extensive use of direct interventions in the market. Instead, it prefers to exert influence through indirect measures, such as investment incentives and taxes on trade.
Government finances in Thailand accounted for 10 percent of GDP in 1995, somewhat less than the average for comparable economies. Revenues exceeded expenditures by 2.35 percent of GDP, making 1996 the eleventh consecutive year that Thailand experienced a government surplus. This surplus, a rare achievement for a developing country, attests to the careful and conservative policies followed by most Thai governments in the latter half of the 20th century.
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