Abhisit: Six months to revive economy

Prime Minister Abhisit Vejjajiva says the government needs about six months to restore the economy and map out plans for political reconciliation before calling a general election.

Providing aid to businesses and workers who were adversely affected by last month's riots and rebuilding the international community's confidence in Thailand are the key priorities, said Mr Abhisit.

''The government is desperate to convey the message that we are now trying our best to recover the economy to 4.7% growth despite challenges both from the debt crisis in Europe and political disparity at home,'' he said.

Reviving the tourism industry, the sector hit hardest by the political unrest, will be the government's key focus in the short term.

The tourism industry is said to be bracing itself for worse losses than the estimated 280 billion baht incurred when yellow-shirt supporters of the People's Alliance for Democracy seized Bangkok's airports in late 2008.

The Tourism Council of Thailand recently cut its forecast for foreign tourist arrivals this year to between 12.7 million and 14 million from 16 million.

Mr Abhisit said the government would offer tax incentives to stimulate domestic tourism, host seminars and offer soft loans to local firms operating in the sector.

A five-year plan for political reconciliation should also be drafted within the next week, he said. The road map will be structured into the 11th national economic and social development plan.

To narrow the income gap, the government wants to develop concrete plans to give poor people greater access to education, public health, social security and employment, said Mr Abhisit.

Social security policies _ such as those covering education, public health, savings, pensions and farm subsidies _ will be given their own annual budgets within five years, he said, instead of being determined by political decisions as is the case now.

The government is also committed in its push to reform land taxes and settle informal debt problems.