Govt assures it is not at fiscal risk

By Paphamon Arayasukawat

BANGKOK (NNT) - The government’s spokesman has assured the government is not facing significant fiscal risk, following the submission of an annual risk report to the Cabinet, confirming that VAT will remain at 7%.

The Government Spokesman, Anucha Burapachaisri, elaborated on the Ministry of Finance’s financial risk report yesterday, saying that this is a required annual report, prepared by the Ministry of Finance.

As mandated by the State Fiscal and Financial Disciplines Act, the Ministry of Finance must release its assessment of future risks by March. The assessment must take into account matters affecting the economy, at the macro level, the financial system, government policies and any government performance which could affect exposure to fiscal risks.

Mr. Anucha said this routine report prepared every year, and does not indicate that the country faces actual fiscal risk.

In this year’s report, the Ministry of Finance says the situation remains normal, in line with the confidence index over government bonds which has not changed since the pre-pandemic period.

The report does, however, indicate lower than target government revenue in the first five month of fiscal year 2021, due to the economic slowdown caused, by COVID-19, and tax filing deadline postponements.

The government spokesman confirmed that the administration has no intention of increasing teh 7% Value Added Tax rate.