Korn: Tax collection must become more efficient

Korn: Tax collection must become more efficient

• Published: 12/06/2010 at 12:00 AM
• Newspaper section: Business

Thailand must look to improve the efficiency of both tax collections and public spending to help strengthen the country's long-term fiscal outlook, says Finance Minister Korn Chatikavanij.

Mr Korn said that Thailand continued to enjoy broad fiscal stability, despite the fact that the 2011 fiscal budget starting from Oct 1 will mark the fifth straight year of deficit spending.

Past governments as well as the current administration have been forced to set deficit budgets to compensate for lower tax revenues and the need for fiscal stimulus measures during the economic crisis.

The 2011 budget calls for spending of 2.07 trillion baht, a 21.8% increase over the current budget. The 2011 deficit is projected at 420 billion baht.

Mr Korn said the deficit was unlikely to be a problem so long as the economy continues to expand.

Authorities project economic growth this year of around 4%, although domestic political stability and the global economy remain major risks to growth.