BT15-BN DEFENCE BUDGET APPROVED

       The Cabinet yesterday approved a Defence Ministry procurement budget of nearly Bt15 billion to buy various types of weaponry and other military hardware for the armed forces.
       It also approved new borrowing of Bt844 billion in the 2010 fiscal year and refinancing of Bt792 billion.
       Under the public debt amount, the government will borrow Bt350 billion and refinance Bt323 billion, while Bt139 billion is earmarked to replenish the loss incurred by the Financial Institutions Development Fund.
       Bt320 billion will be raised to strengthen the economy, while Bt288 billion is reserved for state enterprises' debt management. The government will also raise foreign loans worth Bt118 billion and another Bt98 billion to refinance its existing loans.
       Deputy Prime Minister Suthep Thaugsuban cahired the meeting in the absence of Prime Minister Abhisit Vejjajiva, who is on an official trip to the United Nations in New York.
       The Cabinet spent on 20 minutes discussing the Defence Ministry's procerement plansfor the Army, Navy and Air Force.
       The ministry will boost the Navy's counter-submarine cpapbility with the procurement of Bt989 million worth of sonar and ralated equipment from Loxely.
       The Navy was also given Bt1.1 billion to buy three coastal patrol ships over the next two years.
       The Army was given Bt976 million to pruchase 14,264 rifles over the next two years and another Bt4.99 billion to buy 1,474 2.5-tonne military vehicles.
       Cabinet sources said a special procurement method would be used for the budget, with the armed forces allowed to negotiate directly with suppliers.
       Meanwhile, the Cabinet also approved Bt81 million for the national police forece to buy antiriot equipment for metropolitan and provincial police.