FPO chief confident diesel excise tax cut will not affect fiscal position

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BANGKOK, May 21 – Fiscal Policy Office (FPO) Director-General Naris Chaiyasoot on Friday expressed confidence that the diesel excise tax reduction measures taken by the government to cap diesel oil prices at below Bt30 per litre would not affect the country’s fiscal position.

 

Announcing the fiscal position in the first 7 months of fiscal 2011, he said the government managed to put Bt916.24 billion into the state coffer, up Bt67.29 billion or 7.9 per cent from the same period the year before.

The revenue collection by three state agencies responsible for taxation had surged due to continued economic growth.

Simultaneously, the budget disbursement totaled Bt1.29 trillion, up Bt219.33 billion or 20.3 per cent from the corresponding period last year.

It resulted in the budget deficit of Bt382.63 billion. The figure, when combined with the off-budget deficit of 61.08 billion baht arising from the fiscal bill redemption, put the balance of cash in deficit at Bt443.71 billion.

However, the government borrowed Bt129.61 billion to compensate for the deficit. It helped reduce the deficit to Bt314.11 billion, resulting in the treasury cash balance standing at Bt115.21 billion at the end of April.

Although the government issued the diesel excise tax reduction measure, Mr. Naris said, FPO was confident it would not impact the fiscal position given the improved economic situation and strong fiscal position.

As at the end of fiscal 2011, he projected, the treasury cash balance would remain at around Bt300 billion, which is considered a stable position. (MCOT online news)