Revenue fiscal 2024, which concluded in September, fell short of the government’s target by 4-5 billion baht due to the appreciation of the baht.
Finance Permanent Secretary Lavaron Sangsnit noted that the rapid strengthening of the baht in the final two weeks of the fiscal year led to a drop in value-added tax (VAT) revenue from imports, particularly for oil. This decline occurred as import prices, when converted into baht, decreased, resulting in lower VAT collections.
He stated that, without the volatility in the exchange rate, revenue collection would have likely met the targets.
“The shortfall in revenue collection in the last two weeks of the fiscal year can be wholly attributed to baht fluctuations. However, the reduction in revenue for fiscal 2024 will not affect government spending, as the budget expenditure rate typically does not reach 100%,” Mr. Lavaron explained.
For fiscal 2024, which was anticipated to incur a budget deficit, government spending was set at 3.48 trillion baht, with projected revenue at 2.78 trillion baht.
In fiscal 2025, the government plans to allocate 3.75 trillion baht in expenditure and projects revenue of 2.88 trillion baht, again leading to a deficit. Most of this revenue estimate is expected to come from the Revenue Department, which is projected to collect 2.37 trillion baht, followed by the Excise Department with 609 billion baht.
In related news, Mr. Lavaron presided over an award ceremony on Tuesday for educational institutions with the highest student loan repayment rates from the Student Loan Fund (SLF).
He mentioned that recent amendments to the SLF law have positively impacted repayment rates by revising the debt repayment order to prioritize principal payments first, deferring outstanding interest payments until later.
In the last academic year, SLF repayments reached 25 billion baht, approximately 10% higher than the previous year, with the value of loans granted reaching a peak of 52 billion baht.
Chainarong Katchapanan, the fund’s manager, explained that debt restructuring encourages more borrowers to repay their debts. Through restructuring, penalties are temporarily suspended, providing borrowers with up to 15 additional years to repay.
This system helps prevent defaults, as penalties will be reinstated if borrowers fail to meet obligations. More than 200,000 borrowers have undergone debt restructuring, out of over 2 million eligible accounts.
Mr. Lavaron indicated that the SLF intends to broaden access to debt restructuring options for state financial institutions, offering borrowers more alternatives.
