Bt100-bn shortfall in tax

The shortfall reflects the sagging economy, which is expected to last long into 2010, he told a seminar yesterday on next year's outlook for the Thai economy.

The government earlier targeted Bt1.3 trillion in tax revenue for the fiscal year.

Satit said the shortfall suggested a shrinking economy and rising numbers of unemployed.

Government revenue from value-added tax increased only 3 per cent month on month in October, he added.

Patanamat Wongpipatanakiri, public-relations director at the Tourism Authority of Thailand (TAT), suggested the government put a plan to boost tourism on the national agenda.

The tourism sector has suffered from the flagging economy and the recent closure of Bangkok's two airports.

The TAT will propose that the government spend Bt20 billion to boost tourism. Reviving that sector would help the national economy.

Meanwhile, the Kasikorn Research Centre (KRC) said an increase in unemployment next year could lead to a slump in spending power and increased private debt.

It predicts a million jobless in next year's first quarter, of whom 67.5 per cent will be recent graduates.

"This will lower consumption among new workers to at least Bt13 billion, or 0.6 per cent of private-sector consumption in 2009," the KRC said.