Budget disbursement down

Budget disbursement down

Budget disbursement during the first three months of fiscal 2015 is expected to fall slightly short of the target.

Deputy Finance Minister Wisut Srisuphan estimates 725 billion baht or 28.2% of the annual budget expenditure of 2.575 trillion will be drawn down for the October-December period.

The Finance Ministry recently set a budget disbursement target for the three months through December of 32%.

Up to 900 billion baht is expected to be pumped into the system during the period if included are state enterprise investment of 61 billion and cash handouts of 1,000 baht a rai with a maximum of 15,000 per farm household, Mr Wisut said after a meeting to ramp up budget disbursement.

Public spending has been the major driving force behind the country's economic revival, while other engines — exports, domestic consumption and private investment — remain fragile.

Economic growth is forecast to come in at less than 1% this year.

If government agencies manage to disburse 725 billion baht of the budget in the first three months, the full-year disbursement target of 96% will be reachable, Mr Wisut said.

To facilitate state investment, the Comptroller-General's Department has amended regulations governing e-auctions.

Now the department can decide whether an e-auction can proceed if there is only one bidder rather than automatically cancelling it as required before.

In another development, government revenue collection for the first two months of fiscal 2015 totalled 335 billion baht, beating the target by 6.49 billion despite November's collection alone missing its target by 7 billion.

Above-target contributions by state enterprises was the main reason for the good performance, said Kritsada Jinavijarana, director-general of the Fiscal Policy Office.

State enterprises' revenue contribution to government coffers surpassed their target by 13 billion baht in the October-November period.

All three tax-collecting agencies missed their targets for the first two months of fiscal 2015.

The Revenue Department's tax collection missed the target by 1.9 billion baht, the Excise Department by 3 billion and the Customs Department by 1.3 billion.

Corporate income tax fell 5 billion baht below target, while personal income tax exceeded the target by 2 billion.

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