Government budget deficit needed for Fiscal 2016

[webfact]

Government budget deficit needed for Fiscal 2016
By Digital Content



BANGKOK, Jan 5 -- Finance Minister Sommai Phasee said today he would meet with Deputy Prime Minister Pridiyathorn Devakula on preparations for the government’s Fiscal 2016 expenditures, beginning October 1, when the deficit will increase to more than the current fiscal year.

He said the government needs to invest more for several development projects and its expenditure for Fiscal 2016 would see a higher deficit than the current 2015 fiscal year.

The foundation for investment must be solid, so the investment budget should exceed Bt350 billion and may increase to more than double in the next 6-7 years, said Mr Sommai.

Defending a plan to prepare a budget deficit is not related to the government’s tax collection system. Mr Sommai said he believed tax collection for Fiscal 2016 should exceed this fiscal year's due to several amendments of the tax structure such as a plan to collect an inheritance tax.

He said whether the government could collect a large amount of tax during Fiscal 2016 would depend on the country’s economic situation.

If the gross domestic product (GDP) grows from 4-5 per cent annually, tax collections would also rise.

The government’s budget expenditure during the current 2015 Fiscal Year stands at Bt2.575 trillion, an increase of Bt50 billion from the previous fiscal year.

The budget shows a deficit of Bt250 billion. (MCOT online news)


-- TNA 2015-01-05

[kalbo123]

If the gross domestic product (GDP) grows from 4-5 per cent annually, tax collections would also rise.

Wishful thinking or based on anything?>

[Noi657]

A country where cash is king... Good luck with that tax revenue!

[DKUNPUTAF713]

I am sure there is an error here in the OP headline.

When is it ever prudent to have deficit to increase revenue in a proposed budget?

If you do have a deficit in a future budget it is because planned expenditures exceed predicted revenue and certainly shouldn't be planned for!!!!

[Pib]

I am sure there is an error here in the OP headline.

When is it ever prudent to have deficit to increase revenue in a proposed budget?

If you do have a deficit in a future budget it is because planned expenditures exceed predicted revenue and certainly shouldn't be planned for!!!!

He is just saying the govt will need to spend more than they collect (ie., run a deficit) in order to pay for benefits, planned projects, stuff politicians want to fund, just the projected 2016 budget. Pretty much the same thing most countries currently do. And how to you cover that deficit? Well, they issue bonds which creates a national debt...kinda like the U.S. national debt running around $18T.

[worgeordie]

Why can Governments not learn to balance their books,like

responsible citizens have too,spending more than you earn

does not present good ethics to the people they are supposed

to represent,resulting a large portion of the population up to

their eyes in debit,maybe thinking if the Govt. can do it why not

me.

The problem is when the shit hits the fan,the everyday folk suffer,

while Governments/Countries are too big to fail.

regards worgeordie

[Pikeybkk]

yet, they are proposing that army chiefs get the dream wishlists in....

[jonclark]

whats up with the guy on the right?

[mikebell]

whats up with the guy on the right?

He's either got a wonky eye or he's winking to say don't believe a word of what the minister is saying.

[Pib]

He's the govt guy that always keeps "an eye" on the press.