Thai economy booms as government’s fiscal income beats projections with 122bn baht surplus

The Thai economy demonstrates strong recovery and active imports as the Thai government’s net income during the first two-thirds of fiscal 2023 has surpassed projections by 122 billion baht, revealed Fiscal Policy Office Director-General, Pornchai Thiraveja, 42 years old.

Between October 2022 and May 2023, the Thai government raked in a total of 1.64 trillion baht, which is an 8% surge from the previous year’s growth rate of 4.9%. This leap also exceeded the target set by them by 122 billion baht, boosting the Thai economy.

The revenue surge in the Thai economy can be traced to multiple sources, as explained by the tech and marketing whizz. The largest contributor was the Revenue Department of the country, amassing 1.3 trillion baht – this was 134 billion baht more than the original target, marking an 11.5% rise, and a 4.4% increment in relation to the same timeframe in the previous fiscal year. The director-general pointed out that the thriving Thai economy triggered an increase in individual tax, corporate tax and value-added tax.

Additionally, the Customs Department reported a collection of 87 billion baht, which was 16.5 billion baht more than its target. This sparks a 23.5% hike and is a 22.4% rise when compared to the same period in the previous fiscal year. The department’s accomplishment was mainly due to an increase in the value of imports, delayed customs duties and imports’ turnover tax based on legal proceedings.

Despite the thriving Thai economy, the Excise Department fell short of its target. It only gathered 313 billion baht, missing the target by 65.5 billion baht, or 17.3%. This was a 12.4% drop compared to the prior year, caused mainly by a reduction in diesel fuel’s excise tax rate aiming to mitigate the high living costs due to a global surge in oil prices.

The director-general also highlighted the positive trends in the Thai economy and shared that several state companies have remunerated incomes totalling 117 billion baht. This value beats its target by 89.4 billion baht or 8.3%. It was also shown to be a 7% rise compared to last year because of postponed payments from the past fiscal year.

Several other state agencies contributed to the finance ministry income with a total of 160 billion baht. This exceeded their target by 57.3 billion baht, marking a 55.3% increase, which is also up by 55.4% from the previous fiscal year. The increase was owing to revenues from their circulating funds, concession fees from mobile network companies, bond issuance for fiscal deficit mitigation and license auctions for FM radio frequencies.

Meanwhile, as the Thai economy recovers, the government has already expended 2.22 trillion baht in the first eight months of fiscal 2023, a 5% hike from the previous year. It also had to borrow 384 billion baht to cover the fiscal deficit which is 22.2% less compared to the last fiscal year’s same period.

At the end of May, the treasury was reported to have 256 billion baht, a drop of 35.2% compared to the previous year, reported Bangkok Post.

Given the encouraging financial milestone, the planning office now anticipates a 3.6% growth in the Thai economy for 2023, continuously rising from 2.3% in the previous year. This projection is based on the recovery in domestic consumption and the revival of the tourism sector, especially from Asian and European travellers.

Amidst a flourishing Thai economy, the office predicts that Thailand will welcome approximately 29.5 million foreign tourists this year, a substantial 165% upsurge from 2022. Such tourism is anticipated to generate a handsome income of 1.3 trillion baht – a staggering rise of nearly 256%.