Thailand announces $39 bn stimulus plan

Bangkok, March 18 (DPA) Thailand plans to spend 1.4 trillion baht ($38.9 billion) to stimulate the economy over the next three years, Prime Minister Abhisit Vejjajiva announced Tuesday.

Abhisit said the money, to be raised with foreign loans, would be spent on investments in small infrastructure projects in education, transportation, and public health, the Thai News Agency said.

It is the second stimulus programme launched by Thailand this year. In January, the government allocated 116.7 billion baht ($3.35 billion) in cash handouts, tax cuts and subsidies in an initial response to the global financial crisis.

Thailand's economy is expected to contract 1 to 2 percent this year. Exports, which account for more than 60 percent of gross domestic product, fell 26 percent in January.

Government revenues for the current fiscal year are expected to fall 150 billion baht ($4.2 billion).