Cabinet approves medium-term fiscal plan until 2021

The cabinet yesterday approved a medium-term fiscal plan (2019-2021) as required by the new Fiscal Responsibility Act, which puts more restrictions on government off-budget loan-seeking legislation.

Nathporn Chatusripitak, an adviser to the PM’s Office Minister, said the mediumterm fiscal plan calls for the government to run a budget deficit of 450 billion baht between 2018-2019, of 452 billion in 2020, and of 524 billion in 2021.

Under the plan, the government needs to increase tax collection and reduce the government’s infrastructure expenditures through public-private partnership and Thailand Future Fund.

The government also forecast the country’s economic growth at 4.2-4.7% in 2018, 3.9-4.9% in 2019, and 3.5-4.5% between 2020-21.

The government expects to be able to collect revenue totalling 2.45 trillion baht in 2018, rising to 2.55 trillion in 2019, 2.74 trillion in 2020 and 2.77 trillion in 2021.

Public debt to GDP is expected at 6.92 trillion baht, accounting for 42.6% of GDP in 2018, rising to 7.63 trillion, 8.46 trillion and 9.28 trillion for 2019-2021, which account for an average of 47% of GDP in 2021.

“The plan hopes to reduce the budget deficit from 2022 onwards because of better efficiency of revenue collection and decreasing expenditure,” he said.

The Fiscal Responsibility Act, enforced from April 20, is designed to maximise budget spending and prevent politicians in the future from repeatedly using offbudget borrowing to finance projects, particularly pork-barrel schemes.