"Viet Nam's state treasury has failed to raise sufficient funds through bond issues this year, sparking concerns about how Hanoi will fund a budget gap that could widen to a tenth of gross domestic product (GDP). In an attempt to dig the country out of an economic hole that caused first quarter GDP growth to stumble to its slowest pace in a decade, the state has unveiled a string of economic stimulus measures that the government says will cost around $8 billion.

But the economic slowdown has staunched the flow of its main revenue sources -- proceeds from crude oil exports and taxes -- raising questions about how the shortfall will be met. The government projects the 2009 budget shortfall at 8 percent of GDP, although the Asian Development Bank estimates it will be closer to 10 percent."

"The recent increase in excise tax on motor fuel in Thailand has been poorly timed and is counter-productive in an attempt to resuscitate the country's battered economy. Doubling the excise tax to 10 baht a liter will inevitably hit the hard-pressed consumers, pushing up costs at industries where energy accounts for a good part of their operating expenditure.

The tax hike is also translated into higher transportation and logistics costs that will make struggling local businesses even less competitive at a time when the global economic crisis has yet to show any sign of easing. Other crucial economic sectors like farming and fisheries, which are relying heavily on diesel fuel, are not immune to the adverse impact, either. The fuel tax will also diminish the benefits of the state-sponsored stimulus package."

"PRC should reform its social security system in a bid to boost domestic demand and transform the growth mode that relies too much on exports, economists said at a meeting in Beijing Tuesday. China will have to rely more on domestic consumption if it seeks to repeat its economic miracle over the past 30 years.

China's economic data for March and April has shown signs of recovery as its $586 billion stimulus package fed through the economy. Infrastructure-focused government spending could ease the slowdown in the short term, but it might not be the solution in the long run."

"Lao PDR is to launch the country's first ever international bond in a sign of rising investor confidence and risk appetite. The country is looking to global investors to raise $72.5 million to help pay for new infrastructure projects and create jobs. It is yet another sign of increasing activity in the global bond markets as investors are seeking to diversify into economies that they would have shied away from only a few months ago.

Proceeds from the Lao bonds would be used to buy a stake in a hydropower project to provide electricity to Thailand. The deal is likely to be launched later this year."

"The State Bank and the federal government in Pakistan have been actively promoting financial inclusion to help achieve the target of reducing the level of poverty to a single digit by 2015, said the deputy governor. Financial inclusion was the core component of the State Bank's financial sector development strategy, which envisages transforming the financial market into an equitable system with efficient market-based financial services to the otherwise excluded poor and marginalized population, including women and young people.

He said the number of corporate borrowers increased by 83 percent, SME borrowers by 134 percent and agricultural borrowers by 44 percent. Of the 555 new bank branches opened during 2008, 20 percent are now in rural areas. Moreover, banks are encouraged to establish low-cost sub-branches, booths and service centers for performing limited banking functions."

"The mass movement of labor to higher-productivity jobs is one key factor behind the emerging-market growth miracle. Approximately 140 million 'rural dwellers' will move to urban centers by 2020, according to research, and 700 million people will be urbanized by 2050. That transition will require $620 billion on infrastructure spending from 2008 to 2018.

The need for reform is crucial to keeping India's economy in the fast lane with PRC, where the government has big plans to spend on infrastructure this year and next to revive economic growth. In contrast, India has less opportunity to spend in the near term and will follow a public-private infrastructure model, due to tighter fiscal restraints. India's government is constrained by a budget deficit close to 10 percent of GDP, including off-balance-sheet items."

"Exports in the Philippines plummeted to record levels in the past months, but the central bank said the worst may soon be over for exporters as global demand is expected to recover gradually in the second half. The latest data from the National Statistics Office showed that exports in the first quarter fell 36.8 percent to $7.92 billion from $12.54 billion in the same period last year.

However, there are indications that the year-on-year decline in exports would be slower in the second half because there could be improvement in economic conditions and in consumption in foreign markets. Demand by the United States and other advanced economies for goods and services would likely improve in the second half and benefit the Philippines' export sector."

"Economists have said to further avert the recession fallout in Bangladesh, measures should be incorporated in the next budget for increasing domestic demand to create employment. A central bank official said although growth fell in recent months, the overall remittance and export performance is still satisfactory, leading to an improved current account balance.

If exports or remittances drops, employment has to be created for the expatriates who will return home or those who would lose their jobs due to the slowdown in exports. If revenue earning does not increase, government borrowing will go up and so will inflation."

"PRC will subsidize purchases of cars and home appliances to replace older models, expanding a program first introduced in rural areas to major cities, the government said in its latest move to stimulate the economy. Areas qualifying for the subsidies, as they are dubbed, include Beijing, Shanghai, Tianjin and several provinces in China's affluent coastal regions.

The announcement came a day after the government outlined plans for revitalizing and restructuring China's light industries and its often loss-making petroleum refining sector. The government gave no specific cost for the programs, and it was unclear whether or not some costs are included in a $586 billion economic stimulus package announced late last year, which focused on construction projects."

"The Kazakhstan government's bailout fund has limited resources for further rescues of the nation's banks and companies, according to the chairman of the fund. The Kazakh government has taken $10 billion, built up to guard against a decline in oil prices, to stave off collapses at the country's biggest banks and prop up the economy.

Kazakhstan, which holds 3.2 percent of the world's oil reserves, has also devalued its currency and cut interest rates in an attempt to halt a plunge in economic growth."

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