B2 trillion loan decree 'unconstitutional'
- Published: 3/07/2013 at 03:23 PM
- Online news:
The issuance of a government decree empowering the Ministry of Finance to acquire up to 2 trillion baht in loans for infrastructure development megaprojects is in violation of the constitution, Law Reform Commission chairman Kanit Na Nakhon warned on Wednesday.
Mr Kanit said the 2007 constitution stipulates the country’s money can be spent under only four laws, not by special law such as the 2-trillion-baht loan decree. The government decree also contravenes the charter on the issue of fiscal discipline.
The decree is also unconstitutional because it refrains from allowing people’s participation, he said.
Mr Kanit said the LRC has put three proposals to Prime Minister Yingluck Shinawatra, the coalition partners in the Pheu Thai-led government, and to the opposition parties for consideration.
The first is that the government can look for another ways to fund its planned infrastructure overhaul without seeking loans that could affect the country’s economy and financial balance. These could include allowing the private sector to co-invest.
The second proposal is that a feasibility study should be made of the infrastructure development scheme and that only necessary projects should be implemented, in order to reduce the size of the needed loans and to maintain an economic balance.
The third is that environmental impact and health impact assessments were necessary, and that public hearings should be organised to gauge people’s opinions and allow the people's participation, as stipulated by the constitution.
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