Government revenue collection in the first quarter of fiscal 2025 exceeded the target by 2.4%, lifted by income from state enterprises, the excise tax on beer and value-added tax (VAT) from domestic consumption.
According to Pornchai Thiraveja, director-general of the Fiscal Policy Office, from October to December 2024 the government collected 614 billion baht, surpassing the target by 14.1 billion baht. However, revenue collection still dipped 1.4% year-on-year.
The improved performance was attributed to carry-over income from state enterprises to the Finance Ministry from the previous fiscal year.
As a result, in the first quarter state enterprises remitted 51.9 billion baht, which was 42.7% higher than the target.
Revenue contributions from agencies not responsible for revenue collection amounted to 50.8 billion baht, exceeding the target by 24.7%.
This included premium income from the sale of bonds issued to finance the fiscal deficit, as well as higher than expected excise tax revenue from beer and VAT from domestic consumption.
Part of this surplus can be attributed to the government's stimulus measures.
In the first quarter of the fiscal year, the Revenue Department collected 470 billion baht, 0.8% above the target, while the Excise Department collected 122 billion, exceeding the target by 4%.
The Customs Department took in 28.9 billion baht for the period, falling 6.2% short of the target.
Mr Pornchai said the Finance Ministry will manage revenue collection to ensure net revenue for this fiscal year aligns with the target of 2.88 trillion baht, helping to maintain fiscal stability and supporting the government's stimulus measures.
Regarding beer excise tax collection, revenue improved for the period.
In October, 5.99 billion baht was collected in beer excise tax, 0.09% below the target. In November, 7.44 billion baht was collected, exceeding the target by 24.1%, while in December the agency took in 9.50 billion, beating the target by 18.9%.
According to the government's medium-term fiscal plan for 2026-29, government revenue is expected to rise to 3 trillion baht by fiscal 2027, reaching 3.39 trillion baht in 2029.
Expenditures are projected to increase from 3 trillion baht to 4 trillion by 2029.
Regarding the government's fiscal balance, the budget deficit is expected to gradually decrease from 865 billion baht in 2025 to 703 billion in 2029.
However, the government's public debt is projected to increase from 65.6% of GDP in 2025 to 69.3% in 2029, according to the plan.