“Chulaphan” reiterates that the 2015 budget allocation is within the framework of fiscal discipline, saying that the reduction will not affect the work, confirming that the budget will be used carefully to avoid future risks. “Nattapong” proposes tax reform, asking the government to find ways to reduce regular expenses, worrying that borrowing to stimulate the economy in the short term will create a downward cycle and will not create a future for the country.
In considering the draft of the Budget Expenditure Act, Mr. Nattapong Ruangpanyawut, MP for the party list and leader of the Prachachon Party, discussed that the biggest problem in Thailand at the moment is revenue collection, tax collection of GDP from 16 percent to 14 percent, and it seems that taxes are being collected from the poor more than from the rich. However, he is concerned that borrowing to stimulate the economy in the short term will cause a downward cycle because there is a lack of long-term fiscal space, and it will not be able to genera
te income from industries in the future, causing the government to collect even less taxes in the future.
Mr. Nattapong continued that the solution is to reform the tax and budget systems. We have to ask how the government can increase the proportion of income to GDP in tax collection, reduce inequality. Simply put, we aim to collect the appropriate 1 percent of people in order to distribute welfare to the people, develop human capital, develop infrastructure, and create a long-term upward cycle for the country.
‘What we need to ask the current government and the next government, besides the proposal to reform the tax system, we want to see a reduction in regular expenses. How can we make sure that we are not borrowing just to give away, but borrowing to upgrade skills and develop human capital? For the reasons mentioned above, I beg your pardon for disagreeing with the majority of the committee and requesting to reduce the annual budget framework that has borrowed until it reaches the ceiling and does not
create a future for the country,’ said the leader of the Prachachon Party.
Mr. Chulaphan Amornvivat, Deputy Minister of Finance, explained that the consideration of the Budget Committee has set up a subcommittee to consider the details of the work and to look at the appropriate reduction, including careful consideration. Most of the reductions will not affect the work and the results of the work that the agencies or budget units are responsible for helping to solve the problems of the people in any way. However, it is a reduction in proportion that will not affect the work and can achieve the results as planned. It is a way to trim the fat and confirm the reduction that has occurred.
Mr. Chulaphan continued that the need to set estimates and assumptions for the 2025 budget, with concerns about the collection figures, is a concern that we listen to. However, the government’s revenue collection mechanism does not have a single wing. In 2024, which was an example, there was concern, especially about excise tax
, which missed the target due to the government’s decision to help the people by reducing energy prices in various categories in the past, which was a reduction in revenue to solve problems for the people. He confirmed that the Ministry of Finance can manage additional revenue collection through both state enterprises and the Department of Revenue in many ways, such as increasing the efficiency of revenue collection, facilitating taxpayers, using new technologies to increase the efficiency of tax collection, including accelerating government investment through tourism stimulation and BOI investment, which can result in increased revenue collection in 2024.
Mr. Chulaphan said that the Ministry of Finance confirmed that revenue collection at the end of fiscal year 2024 is within the framework and should be on target. If there is a mistake, it is not significant or not in the tens of billions that you are concerned about. It also does not affect revenue collection in 2025. Therefore, various actions, especially
economic stimulus measures in the 2025 budget, will allow the government to increase revenue collection. The economic expansion that is about to occur will increase the government’s ability to pay off future debts and reduce the public debt to GDP ratio. He confirmed that the estimates that have occurred, even though the situation during the budget setting period before the date we accepted the principle in the first reading until today, may have changed somewhat, but it is at a level that government agencies can manage to support.
Mr. Chulaphan added that Thailand has certainly had an economic expansion that is lower than its potential for no less than 15 years. The Thai economy is still facing problems both domestically and internationally, both geopolitical conflicts and slower-than-expected recovery. Household debt is also at a high level. Therefore, the government needs to create a short-term deficit budget to support the recovery and promote economic growth to accelerate more than in the past. We want
to create Thailand’s growth at a level that is equal to and competitive with other countries in the region. When the economy expands, the government will collect more revenue and help reduce the ratio of interest burden to income, which will increase GDP, which will help reduce the ratio of public debt to GDP to be appropriate. He also confirmed that the budget framework this time is within the framework of financial and fiscal discipline in all respects.
‘I understand that the committee and members may be concerned about the higher-than-normal deficit this year, but we listen to your concerns and they are all within the framework of fiscal and financial discipline. If you raise your concerns that the government’s actions are risky, I would like to respectfully state that if the government does not take any action today, we said that we will reduce the 2025 budget by 200 billion baht, as the members have suggested. If we reduce it, the deficit will be reduced. You said that there will be more fiscal space, b
ut that does not confirm that Thailand will be free from any risks because other risks are still occurring, which is the risk that people will not receive economic stimulus services or assistance in various economic situations in the future. Therefore, if you raise the issue of risk in any form of action, I would like to say that there are risks in every form. However, we accept your concerns and, with your concerns and your understanding of budgetary mechanisms and fiscal mechanisms, we confirm that we will proceed with prudence and use the budget in a worthwhile manner so that the risks you are concerned about do not occur in the future,’ said Mr. Chulaphan.
The majority of the House of Representatives agreed with Section 4, the overall budget according to the committee, with a vote of 266 to 147, 1 abstention, and no votes. 312 – 319.
Source: Thai News Agency