• 
• 

Published on November 9, 2007

Somchai Sujjapongse, the ministry's spokesman, yesterday said the budget deficit should not exceed the critical level of 2 per cent of gross domestic product (GDP). The planned deficit for this fiscal year is Bt165 billion, or 1.8 per cent of GDP. The current government projects revenue of Bt1.495 trillion.

"We have run fiscal deficits for two years, so I think the budget should be balanced in the next fiscal year," said Somchai.

Several parties have promised populist projects that would require more public spending. Somchai said they should also explain to voters how they plan to generate income to pay for the schemes.

Government revenue in the first month of the current fiscal year exceeded the target, the ministry said, but the new government will be under several constraints to expand public spending.

Revenue last month - the first month of the fiscal year - rose 8 per cent year on year, exceeding the target of 1.3 per cent and rising to Bt116.09 billion.

Somchai added that higher oil prices and the volatility of the exchange rate would adversely affect government revenue in the rest of the fiscal year. However, greater political certainty after the December 23 poll will boost confidence, leading to higher growth and increased revenue.

Last month, the Revenue Department's tax collections rose 6.5 per cent to Bt73.08 billion, surpassing the target by 0.2 per cent. Higher receipts of corporate income tax made a significant contribution.

However, collections of value-added tax, personal income tax and specific business tax were slightly lower than targeted.

The Excise Department's receipts dropped 4.2 per cent year on year in October to Bt73.08 billion, missing the target by 0.4 per cent. 

Customs Department collections totalled Bt8.44 billion, up 7.6 per cent year on year or 8.4 per cent above target.

Wichit Chaitrong

 The Nation