Govt posts Bt22.8 bn shortfall in December

 Somchai Sajjapong, director-general of the Fiscal Policy Office as the Finance Ministry's spokesman, said in December, revenue was only Bt76 billion. Among the reasons, value-added tax shortfall in the month was Bt5.14 billion while the Revenue Department's tax rebates were Bt9.3 billion above the target.

 During October and December, revenue was only Bt272.8 billion, down Bt52 billion from target and 16.1 per cent down from the previous year.

 Somchai attributed the shortfall to lower-than-expected oil excise tax, VAT and remittances from state enterprises, as well as higher-than-expected tax rebates. He said that the 2009 revenue should be lower than expected, but not to the level that will hit fiscal disciplines.

 Still, he said the lower tax revenue could boost the economy, as more money is circulated in the system.