BANGKOK, Aug 7: The International Monetary Fund (IMF) has called for 60 billion baht (two billion dollars) in cuts from the Thal budget next year. Prime Minister Chaowalit Yongchaiyudh was quoted today as saying, reports AFP.

The IMF had cautioned Thailand, however, against cutting funds for education, health and Infrastructure, sectors which would strengthen the country's long-term competitiveness. the Bangkok Post reported.

The massive cuts would be needed despite plans to raise value-added tax from seven per cent to 10 per cent as of August 16.

Chaowalit said there were no plans to cut expenses in fiscal 1997 as the government could balance the budget, the newspaper reported. Spending in fiscal 1998 was likely to exceed the 907 billion baht budget by 75 billion baht.