Revenue collection expected to grow with economic recovery

BANGKOK, Sept 3 (TNA) – The government’s revenue collection this year is expected to regain lost ground as the economy has showed signs of recovery in the past 3-4 months, according to Finance Minister Korn Chatikavanij.

Speaking after joining a function to celebrate the 94th anniversary of the Revenue Department’s establishment, he said the government had earlier expected its revenues this year would be Bt300 billion lower than the target.

However, given the expected economic recovery, the finance minister said he believed collection would fall short of the target by only Bt170 billion, adding that it would help boost the government’s fiscal position.

Mr Korn said the government expected to earn Bt1.35 trillion in revenue for Fiscal 2010 and set the expenditure budget at Bt 1.7 trillion, resulting in a budget deficit of Bt 350 billion.

He believed the revenue earned by three tax collection departments would meet the target.

Regarding the proposed reduction of the corporate income tax to 25 per cent, Mr Korn conceded it could not yet be implemented because the government still carries a heavy spending burden.

The finance minister said the government must adopt deficit budgets for some years to come, but expects a balanced budget in 2015. (TNA)