Govt revenue collection continues to improve, FPO says

Pornchai Teerawet, director of the Fiscal Policy Office (FPO), has revealed that government revenue collection continued to improve in the final two months of fiscal year 2024.

There is also a clear trend of the revenue shortfall narrowing thanks to the improving economic situation. The Ministry of Finance is confident that it will meet the fiscal year’s net government revenue target of 2.236554 trillion baht, as outlined in the budget document.

During the first 10 months of fiscal year 2024 (October 2023 to July 2024), the government collected net revenue of 2.211295 trillion baht, an increase of 3.3% compared with the same period last year. 

This increase was driven by higher-than-expected revenue from state enterprises, the Revenue Department, the Customs Department, and the Treasury Department.

However, net government revenue collection in the first 10 months was 25.259 billion baht, or 1.1% lower than the budget estimate. This shortfall has narrowed from the first nine months of the fiscal year, partly because of the Excise Department being affected by two measures:

The reduction of diesel and gasoline tax rates to alleviate energy costs for the public and businesses from October 2023 to April 2024.

Measures to promote the use of electric vehicles in preparation for a low-carbon society and to position Thailand as a regional hub for EV production.

However, the Excise Department's revenue collection increased by 13.6% compared with the same period last year, and net government revenue rose by 3.3%. Additionally, the base for net government revenue collection in the same period last year included special revenue totalling 69.475 billion baht. 

Excluding this special revenue, net government revenue would have been 6.8% higher than the same period last year.

In the first 10 months of the fiscal year, the combined revenue collection of the three tax departments totalled 2.301992 trillion baht, which was 49.268 billion baht or 2.1% lower than the estimate but 78.354 billion baht or 3.5% higher than the same period last year. 

Regarding the government’s fiscal position on a cash basis during the first 10 months of fiscal year 2024, the government had total revenue of 2.201488 trillion baht, while total budget expenditures amounted to 2.746931 trillion baht.

The government borrowed 468.170 billion baht to cover the deficit, resulting in a treasury balance of 432.097 billion baht at the end of July 2024.