Thailand: Revenue expected to exceed 2022 target
Fiscal 2022 will be the first year since the pandemic broke out for government revenue collection to exceed its target, says Krisada Chinavicharana, permanent secretary of the Finance Ministry.
Mr Krisada said the ministry expects revenue collection for fiscal 2022 to surpass the 2.4-trillion-baht target by around 70 billion baht. He attributed the higher revenue collection to the improving economy.
The National Economic and Social Development Council projects economic expansion in the range of 2.7-3.2% this year. Thailand expects foreign tourist arrivals of 8-10 million this year.
In the two years since the pandemic broke out, the government’s revenue collection fell short of its target by 12.3% or 336 billion baht in 2020, and by 11.5% or around 300 billion baht in 2021.
Prior to the outbreak in 2019, revenue collection exceeded the target by 3% or 6.94 billion baht.
He said the anticipated excess revenue of 70 billion baht has already been factored in when determining the impact of the government’s diesel excise tax reduction three times this year. The excise tax cut cost the state coffers an estimated 68 billion baht.
During the first 10 months of fiscal 2022, the government’s net revenue stood at 2.03 trillion baht, 5.5% higher than the target. The figure is also 5.8% higher than the same period of the previous fiscal year.
Mr Krisada expects the government to meet its revenue target for fiscal 2023 of 2.49 trillion baht.
In a separate matter, he said the government is waiting for the Council of State to finish vetting its draft executive decree to allow the Finance Ministry to guarantee loan repayments and borrowing worth up to 150 billion baht by the Oil Fuel Fund Office.
The law aims to boost the liquidity of the state Oil Fund and cope with rising oil prices.