2 weeks Ago
Revenue collection for fiscal 2024, which ended in September, fell short of the government target by 4-5 billion baht because of baht appreciation . According to finance permanent secretary Lavaron Sangsnit, the rapid strengthening of the baht during the final two weeks of the fiscal year led to reduced value-added tax (VAT) revenue from imports, particularly for oil, as the prices of imports when converted into baht declined, resulting in the VAT collected decreasing accordingly. Without the exchange rate volatility, revenue collection was expected to meet the targets, he said.
"The shortfall in revenue collection during the last two weeks of the fiscal year is entirely attributed to baht volatility. However, the decreased revenue for fiscal 2024 will not impact government spending as the budget expenditure rate generally does not reach the full 100%," said Mr Lavaron. For fiscal 2024, which was projected to post a budget deficit, government expenditure was set at 3.
48 trillion baht and projected revenue at 2.78 trillion. For fiscal 2025, the government set expenditure at 3.
75 trillion baht and projects revenue of 2.88 trillion, again resulting in a deficit. The majority of this revenue estimate comes from the Revenue Department, which is expected to collect 2.
37 trillion baht, followed by the Excise Department with 609 billion baht. In separate news, Mr Lavaron presided over an award ceremony on Tuesday for educational institutions that recorded the highest repayment rates of student loans from the Student Loan Fund (SLF). He said recent amendments to the SLF law positively affected repayment rates because of the revised order of debt repayment, which prioritises paying down the principal first and defers the repayment of outstanding interest until last.
In the last academic year, SLF repayments reached 25 billion baht, about 10% higher than the previous year, while the value of loans granted peaked at 52 billion baht. Chainarong Katchapanan, the fund's manager, said debt restructuring encourages more people to repay their debts. When debts are restructured, penalties are temporarily suspended, allowing borrowers to repay over an additional 15 years.
This mechanism discourages defaults because if borrowers default, the penalties are reinstated, he said. More than 200,000 borrowers have undergone debt restructuring out of more than 2 million eligible accounts. Mr Lavaron said the SLF plans to expand access to debt restructuring options to state financial institutions, giving borrowers more options.
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