Fiscal deficit hits Bt454bn

Thailand's fiscal deficit hit Bt454 billion at the end of January, despite higher revenue, according to the Fiscal Policy Office.

Somchai Sajjapongse, director-general of the office, said today that revenue in the first four months of the 2013 fiscal year increased 24.3 per cent on year or Bt131 billion to Bt674 billion. This is attributable to higher value added tax (VAT) collection and higher automobile excise tax.

Still, budget disbursement hit Bt994 billion in the first four months, an increase of Bt353 billion or 55.2 per cent from the same period last year. This is a result of the late enforcement in the 2013 budget bill as well as the government’s stimulus measures.

Fiscal reserves at the end of January stood at Bt224 billion.

"The government’s budget disbursement has been sped up. Coupled with continued growth in revenue as a result of stimulus-driven economic expansion, the Finance Ministry is confident that the government can proceed with its policies on the back of strong fiscal position throughout the year 2013," Somchai said.