The figures about government’s revenues for february will be published this week (on Finance Ministry website).
I will then update the chart and write an new article.
Before that, we got an “appetizer” with this statement :
Finance Minister Korn Chatikavanij expected revenue shortfall of upto Bt150 billion or 10 per cent below target in the 2009 fiscal year, following the shortfalls in the first five months. [february is the fifth month of the fiscal year]
He attributed the shortfall to fewer economic activities as capacity usage is down to 57 per cent, compared to 70 per cent six months ago. This led to lower imports, which constituted a sizeable tax income. Meanwhile, a drop in oil prices would also lead to lower excise taxes.
He said it is necessary for the government to seek new revenue or borrow to finance projects.
“Despite lower revenue, I insist that the Revenue Department would not be pressured to squeeze business operators or individual for higher tax revenue. But we will consider levying other taxes and reduce the 2010 expenses. Meanwhile, we will borrow external loans, but the government’s deficit this year would not exceed Bt430 billion.” (Nation)
He has the figures for february (5 first months of fiscal year 2009, from october 1 2008 to september 30 2009).
He doesn’t say how much is the drop in february, compared to february 2008. He speaks for the whole year, with -10 % “below target “.
I wrote it many times : we don’t give a rat shit about “targets ” set by lunatics bureaucrats… who simply use linear functions (“we had a growth of 5 % last year, so Somchai put 5 % for the next year. With a little bit of luck, our target will be right”).
During crisis times, their “targets ” are meaningless. They are just totally outdated.
So stay tuned… it’s going to be important to follow the VAT collections with the evolution year on year (read my article : VAT collections plunge by 18 % in january).
VAT is a perfect indicator for consumption. With flat investments, negative exports, small increase of government spendings… consumption is the last “hope” (ah ah ah ah) of the thai government as far as growth of GDP is concerned (read my article about GDP Q4).
Last point : you can admire the non sensical way of thinking of Korn :
-no pressure on businesses and individuals, but we will create… new taxes.
-we will reduce expenses (well done Korn !) but meanwhile we are going to borrow.
This guy is, like all the others, a perfect clown.
And you can book it : the Abhisit government is in deep trouble… No money anymore. With stupid “hand out” policies plus a stupid will to downplay the crisis… the politicians and the bureaucrats are now totally naked.
Here is the proof :
Battered by the world economic meltdown which has also impacted the Thai economy, Prime Minister Abhisit Vejjajiva admitted on Monday that government’s revenue has declined lower than earlier targeted and warned there is need for the government to seek loans to help keep the economy rolling.
The government’s revenue in February is expected to fall considerably below the target due to declines both in imports and the prices of goods, the prime minister said. The Ministry of Finance continues planning how to cope with the range of economic problems, but the government has not borrowed internationally. (TNA)
Game over Abhisit.