Drop In Tax Revenue Necessitates Borrowing From Emergency Loans

[webfact]

 

By Tanakorn Sangiam

    

BANGKOK (NNT) - The issue of public debt has always been a topic of discussion, especially with the recent emergency loans taken out by the government to solve the COVID-19 crisis. The Public Debt Management Office has reassured that the government is capable of paying back these loans.

 

The debt-to-GDP ratio in Thailand has always been in fluctuation, once reaching 59.98% in the year 2000. The limit was 60% at the time.

 

The public debt ratio in the administration of Gen Prayut Chan-o-cha has been going up and down with most of the loans taken to fund infrastructure projects and life quality enhancing campaigns.

 

With the COVID-19 pandemic, the government has met with a substantial need for money to support the healthcare system, stimulate the economy, and provide financial aid to the general public. To make matters worse, the government sees a decline in its revenue from taxation, as people are making less money. This condition makes it necessary for the government to seek loans, resulting in higher public debt.

 

The Public Debt Management Office (PDMO) Director-General Patricia Mongkhonvanit said the government needed to increase the public debt ceiling, which would allow it to implement more financial measures.

 

She said these measures are intended to help improve the economy, while the government remains capable of paying back these loans.

 

With the pandemic, the government’s usual revenue stream from taxation has become insufficient to cover the increased expenditure. The number of people filing their personal income tax last year was around 11-12 million, from the population of 66 million, with only around 2 million paying their taxes in the full amount.

 

The government is now expected to lose some 17 billion baht from its revenue stream, due to the recently introduced excise tax cut for diesel fuel. The revenue drop necessitates the government’s decision to take out emergency loans, so that it can take care of people in need.

 

-- © Copyright NNT 2022-02-18

 

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[Gandtee]

Why not stop buying toys for the boys like submarines. aircraft and SWAT cars. Stop paying expenses to MPs not attending to their duties. 

 

[Tropicalevo]

4 hours ago, webfact said:

most of the loans taken to fund infrastructure projects and life quality enhancing campaigns

I suspect that the majority of Thais have seen little or no benefit to their life quality.

[hotchilli]

I wonder what happened to the huge gold reserves?

[Cake Monster]

5 hours ago, webfact said:

The debt-to-GDP ratio in Thailand has always been in fluctuation, once reaching 59.98% in the year 2000. The limit was 60% at the time.

The public debt to GDP ratio ceiling was increased back in 2021, I believe, to facilitate borrowing of over 1.4 trillion Baht back then for " Covid Relief ".

This took the Debt Ratio well over the 59.98 % figure quoted here for 2000.

I cannot remember the exact new ceiling level, but I do know its much higher than 60 % now

[Will B Good]

1 hour ago, Tropicalevo said:

I suspect that the majority of Thais have seen little or no benefit to their life quality.

Read recently that as little as 7% of allocated funds actually reaches some projects.....????

[spidermike007]

This is likely not about "Covid relief", as the so called assistance programs were very stingy. 

 

This is about gross mismanagement, a low end, bottom of the barrel finance minister and PM, the demolition of the tourism industry, the economic slowdown, the drop in exports, and the large drop in foreign investments, brought on by a lack of confidence in the goons. 

 

They will deflect until the end. With these guys truth is never truth, and transparency will always be lacking. 

 

You need to free up some money? Give up the dumb submarine program. Give up the purchase of advanced fighter jets. Give up the missile and SWAT truck purchase. Be real, and man up. And admit none of this stuff is necessary. The only threat on the borders are the corrupt Prayuth officials. 

[Mavideol]

too many people not paying taxes, doctors with private running offices after their "official" job collect all in cash and nothing to declare

[Mavideol]

30 minutes ago, Will B Good said:

Read recently that as little as 7% of allocated funds actually reaches some projects.....????

government related people with very deep pockets and too many envelopes

 

[Will B Good]

8 minutes ago, Mavideol said:

government related people with very deep pockets and too many envelopes

 

Very true.

 

Thamanant............ with 42 million dollars in the bank.......that wasn't all salary!!!!

[herfiehandbag]

2 hours ago, Tropicalevo said:

I suspect that the majority of Thais have seen little or no benefit to their life quality.

Oh but I am sure that a select number of "influential" and "well respected" individuals have had their life quality significantly enhanced...

[rickudon]

I wonder how much revenue was lost on alcohol sales during the pandemic?