Thai Finance Minister Worried About Hidden Debts

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OFF-BALANCE BUDGET

Finance minister worried about hidden debts

By Wichit Chaitrong

The Nation

Finance Minister Thirachai Phuvanatnaranubala has expressed concern over hidden debts derived from the government's populist policies, while economists propose increasing the value-added tax (VAT) to 10 per cent.

Preparing to propose a budget bill for the next fiscal year, Thirachai said yesterday that he wanted to know the off-budget balance in order to make an accurate assessment of the government's finances.

Some spending items do not show up in the government balance sheet but are hidden off-budget, such as subsidies for farmers through loans from the Bank for Agriculture and Agricultural Cooperatives, he said.

The BAAC earlier said the government had not yet compensated it for about Bt100 billion in farm subsidies by past administrations.

Did the government has compensated state banks that proving loans to village funds,? Thirachai asked.

"I want these obligations to show up and I want to cut them off before planning new spending," he said.

"If too much debt is accumulated, Thailand could face a public-debt crisis as Greece is facing now."

Meanwhile, Kanit Sangsubhan, director of the Fiscal Policy Research Institute, told a seminar yesterday that the government needed to increase VAT from 7 per cent to 10 per cent to maintain fiscal sustainability.

Such a rise in the tax could be accepted by the public when the economy fully recovered, he said.

The new government plans to cut corporate income tax from 30 per cent to 23 per cent next year and to 20 per cent in 2013.

He said the Board of Investment was also working on reducing tax incentives when the corporate tax is cut, and this could increase government revenue.

A carbon tax should also be imposed on consumer products such as mobile phones, he said. Currently the government does not have much room to expand investment because of limited tax revenues and high public debt, as it cannot eliminate the debt overhang from the 1997 economic crisis.

"If the government cannot balance the budget, in the long run it must narrow its budget deficits," Kanit said.

Public debt should not exceed 60 per cent of gross domestic product, otherwise rating agencies may downgrade Thailand's credit rating, which would result in higher borrowing costs, said Kanit, who led a research team studying fiscal sustainability.

Currently public debt is about 40 per cent of GDP or about Bt4 trillion, down from about 60 per cent during the 1997 crisis.

Kanit said that Thailand needs to invest about Bt4 trillion in infrastructure projects over the next five years, but the government has budget about Bt2.42 trillion. The government needs to borrow about Bt1.2 trillion. While state enterprises would contribute about Bt360 billion. The rest is expected to come from private sectors under public-private partnership (PPP) scheme, which amount is too small. The government may try to boost private participation in infrastructure investment by passing a new law to facilitate this, he suggested.

-- The Nation 2011-09-01

[jonclark]

Sorry - Did i read that right - A carbon tax be imposed on mobile phones <deleted> - Why? Surely a carbon tax on cars with an engine of more than 2 liters would help encourage people to use less carbon (i.e. petrol), by reducing emissions, which is the whole purpose of the stupid bloody tax in the first place. Fairly sure it won't encourgae people to make less phone calls or "twitter" less as they sit on the Bts.

Maybe I'm getting on in life and a bit behind the times, are CO₂ emitting phones a new trend amongst the young??

[siampolee]

Maybe I'm getting on in life and a bit behind the times, are CO₂ emitting phones a new trend amongst the young??

I think that the minister meant that he was proposing a tax on the hot air emitted by the P.T.P. ministers and its M.P.s

[jonclark]

Maybe I'm getting on in life and a bit behind the times, are CO₂ emitting phones a new trend amongst the young??

I think that the minister meant that he was proposing a tax on the hot air emitted by the P.T.P. ministers and its M.P.s

Well that certainly would wipe out the countries debt in the blink of an eye

[OzMick]

Reduce the tax on the rich, increase the tax on the poor - that's sure to be popular.

I wonder if he realises that there are 2 ways to balance a budget. Instead of increasing taxes, they could reduce spending, especially hand outs to prop up non-viable industries, and policies that are nothing but vote-buying.

They could even consider reducing the size of the public service (shock, horror!) There are around 30 recent appointments to high-paying positions that will contribute very little to the functioning of the government IMHO. I actually don't know whether they are high-paying, but I strongly suspect that they are not stipend positions taken for the love of King and country.

[Pib]

Get rid of all the "inactive posts" in the govt where high level officials, police, military officers, etc., get assigned to when they get caught going astray of govt policies, possibly breaking the law, etc., and you might be able to reduce the civil service work force by half.

[moe666]

You guys are out of control, proposeing that they break someones rice bowel come on guys your not newbies.

[OzMick]

You guys are out of control, proposeing that they break someones rice bowel come on guys your not newbies.

Surely you didn't mean "breaking their bowel" , unless you want me to punch them with my fistula?

[otherstuff1957]

So, they reduce corporate income taxes - paid by the rich - and increase the VAT tax, which is paid by everyone, but tends to impact the poor more heavily.

I thought that they were supposed to be pro-poor and against the elite?

[sfbandung]

That does it. I'm buying a hybrid mobile phone.

Can I get a Blackberry Prius?

[sfbandung]

You guys are out of control, proposeing that they break someones rice bowel come on guys your not newbies.

It's normally the Som Tam that breaks my bowel.

[Felt 35]

So, they reduce corporate income taxes - paid by the rich - and increase the VAT tax, which is paid by everyone, but tends to impact the poor more heavily.

I thought that they were supposed to be pro-poor and against the elite?

Well you see, human mind is full of loopholes. People who know and understand about this can and will take advantage of their knowledge, while the unknown are sitting ducks (voters) – ready and able to follow every ‘command’ given to them. From a simple ‘do this’ to the level of ‘kill them’. Some for the ‘good cause’(or at least that is what the do-ers believe), some for ‘other causes’.

[Sydebolle]

<br />Get rid of all the "inactive posts" in the govt where high level officials, police, military officers, etc., get assigned to when they get caught going astray of govt policies, possibly breaking the law, etc., and you might be able to reduce the civil service work force by half.<br />

<br /><br /><br />

not enough; it will be rather 75%.

Take this example: has anyone ever tried to work out the details i.e. on a electricity bill (3 phase, 380 volts). It is an A4-sized thing, can be paid only at the PEA offices (provincial electricity authority) in cash OR direct debit from your bank account.

The latest bill was 10% higher than all other months (THB 69'000 instead of THB 61'000) and I went to enquire. Three (THREE) hours later, at PEAs Pattaya office, and talking to 14 different "government officials" I can officially confirm, that none of them knew jack. The deputy chief there (highest ranking person I spoke to) said "why dont you pay and see next month, if the increase remains". Ah, I forgot, the electricity runs to keep a wine storage facility and hence the bill is differenciating by less than THB 300/month. And yes, the equipment is regularly maintained and functioning flawlessly.

[cup-O-coffee]

The combined and fully measured carbon weight of this minister's comments, now loose into he atmosphere and polluting it, is in excess of 4 billion metric tons. He should be taxed for that!

Oh the humanity!

[philhal2]

Sorry - Did i read that right - A carbon tax be imposed on mobile phones &lt;deleted&gt; - Why? Surely a carbon tax on cars with an engine of more than 2 liters would help encourage people to use less carbon (i.e. petrol), by reducing emissions, which is the whole purpose of the stupid bloody tax in the first place. Fairly sure it won't encourgae people to make less phone calls or "twitter" less as they sit on the Bts.

Maybe I'm getting on in life and a bit behind the times, are CO₂ emitting phones a new trend amongst the young??

Nah just ancient and behind the times , just one of a few links available on the subject of Mobiles

http://fatknowledge.blogspot.com/2007/01/carbon-footprint-of-mobile-phone.html

[TAWP]

Sorry - Did i read that right - A carbon tax be imposed on mobile phones &lt;deleted&gt; - Why? Surely a carbon tax on cars with an engine of more than 2 liters would help encourage people to use less carbon (i.e. petrol), by reducing emissions, which is the whole purpose of the stupid bloody tax in the first place. Fairly sure it won't encourgae people to make less phone calls or "twitter" less as they sit on the Bts.

Maybe I'm getting on in life and a bit behind the times, are CO₂ emitting phones a new trend amongst the young??

Nah just ancient and behind the times , just one of a few links available on the subject of Mobiles

http://fatknowledge.blogspot.com/2007/01/carbon-footprint-of-mobile-phone.html

Will the money I pay in extra tax turn all that carbon that my cellphone apparently is responsible to into oxygen, water and unicorns?