The government budget for next fiscal year may be increased by as much as 18% from this year to help fund new social development programmes.
Finance Minister Sommai Phasee yesterday said authorities had forecast a tax revenue increase for fiscal 2016, giving the government additional leeway to boost spending by at least 10% and potentially as much as 18% without undermining the country's debt position or commitment to fiscal discipline.
Sommai: Focus on social development
Spending increases would be earmarked for social development programmes, particularly in the areas of public health and education, he said at the opening of the SET in the City investment exhibition.
The current budget for fiscal 2015 started Oct 1, calls for spending of 2.575 trillion baht, an increase of just 2% from the previous fiscal year.
The Finance Ministry earlier this month said tax revenue in October exceeded targets by over 5.5% as economic conditions improved.
In contrast, for fiscal 2014, government revenue was 8.8% or 201 billion baht below target due to weak domestic economic growth and sluggish exports.
But the government expects its 2.4-trillion-baht infrastructure plan to help jump-start growth.
Meanwhile, Mr Sommai said he planned to review several proposed legal amendments affecting the regulation of the capital market, particularly rules concerning cross-border investment within the Asean Economic Community.
He indicated he favoured extending tax incentives offered to investors in long-term equity funds and that the issue was likely to be settled in next year's first quarter.
The current tax deductions offered for long-term equity fund investment are due to expire in 2016.
Meanwhile, the government yesterday announced it would sell 4 billion baht in public savings bonds starting Dec 1.
The three-year bonds have an annual coupon rate of 3.25%, payable every six months.
Bangkok Bank, Krungthai Bank, Kasikornbank and Siam Commercial Bank will arrange the bond issue.
It will be open to citizens and residents of Thailand, charity foundations, temples, public health and educational institutions, and cooperatives.