InfoQuest, (October 19, 2019) -- At the House of Representatives' review meeting for the 2020 budget bill, Finance Minister Uttam Sawangnoon pointed out that the government's budget allocation is consistent with the national strategy while fully complying with laws and the Constitution, which will benefit Thai people to the greatest extent.
In accordance with the fiscal discipline framework, the budget bill stresses the need to implement the budget management based on the economic conditions at different times, and focus on promoting Thailand's sustainable development and solving practical problems plaguing the people, especially the gap between rich and poor and poverty.
In terms of sources of fiscal revenue and estimates, the main revenue will come from taxation and revenue of state-owned enterprises. The government is confident that the revenue target can be reached as planned. It plans to encourage more people to pay their due taxes by increasing the efficiency and convenience of tax collection. As a result, an estimated 900,000 new taxpayers will be added in the next five years.
Mr. Uttam also explained the budget deficit, claiming that the budget deficit can boost investment when the economy is at risk and a goal to achieve a balanced budget by 2030 has been set, according to the national strategy.
The finance minister added Thai economy is facing challenges from the global economy and as a result exports have been affected. The International Monetary Fund (IMF) recently released a report suggesting that the world economy is still in recession and that countries should accelerate domestic expenditure.
Hence, it is necessary for the Thai government to introduce a stimulus package to shore up the domestic economy, boost consumer spending and build confidence among foreign investors. The government's various stimulus measures are for short-term purpose, which require detailed review. Cash handout is not the way out, and instead the government should act appropriately to the situation and provide assistance quickly and promptly. The stimulus package must cover all social groups, including low-income earners, farmers, ordinary people and small and medium-sized enterprises (SMEs).
The finance minister also mentioned the "Taste-Shop-Spend" measure, which will result in consumption expenditure of 2.5-3 times of that in normal situations. In total, more than 140,000 shops across the country participated in the program. The "Taste-Shop-Spend" measure was designed to stimulate the domestic economy. During the program, technical expertise was even applied to ensure its fairness and transparency, and the registrants' data collected can be used in the future to develop other policies or measures that will benefit Thai people.
Source: InfoQuest, by Tanit Tongnok/ Sasithorn, translated by Xinhua Silk Road
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