PM Srettha sees a revenue-boosting recipe for Q4

Thailand’s government is exploring strategies to enhance state revenue, with Prime Minister Srettha Thavisin expressing optimism about economic improvement in the fourth quarter.

The Bangkok-born PM convened a meeting yesterday with Finance Minister Pichai Chunhavajira, Deputy Finance Minister Julapun Amornvivat, and representatives from key revenue collection agencies, including the Excise Department, the Customs Department, and the Revenue Department, to discuss revenue-boosting measures.

The 62 year old Srettha highlighted the urgency of reviewing plans to cut spending and increase revenue to ensure effective budget management while noting that the Finance Ministry is also considering additional economic stimulus measures.

“Revenue collection is an important matter.”

Ministers responsible for the economy, alongside various agencies, are collaborating to revitalise the economy amid sluggish GDP growth.

The Thai PM expressed his confidence in a positive economic outlook for the fourth quarter, although the current focus is set on improving growth in the third quarter.

“The budget has now been disbursed, and we will discuss ways to ensure it is spent as quickly as possible,”

The National Economic and Social Development Council (NESDC) reported a 1.5% year-on-year economic growth for the first quarter, surprising some observers. The NESDC now projects GDP growth of between 2% and 3% for the year, slightly lower than its previous forecast of 2.2% to 3.2%. Last year’s growth was 1.9%.

Finance Ministry spokesperson, Pornchai Thiraveja, disclosed that the government collected 1.38 trillion baht in revenue from October last year to April, falling short of its target by 2.7%, or 39.1 billion baht.

The Excise Department’s revenue was 304.5 billion baht, about 47 billion baht or 13.4% below the target. However, compared to the same period last year, the collected revenue was 27.5 billion baht higher.

Deputy Finance Minister Julapun explained that the shortfall resulted from government measures to alleviate the high cost of living, including a significant cut on fuel tax, which reduced the Excise Department’s income by approximately 20 billion baht per month.

Following the meeting, Finance Permanent Secretary Lavaron Sangsnit indicated that the Finance Ministry has measures in place to address the revenue shortfall. He also mentioned plans to collect an additional 10 billion baht in revenue, although he did not provide details on the sources of this revenue.

Ultimately, the 62 year old Prime Minister‘s administration remains committed to ensuring economic improvement, recovery and stability, with strategic efforts aimed at boosting revenue and managing spending effectively, reported Bangkok Post.