Somkid hints at another budget deficit in FY 2017
The deputy prime minister in charge of economic affairs, Somkid Jatusripitak, has hinted that the 2017 fiscal budget will continue the deficit trend, in order to support the need for government investment in infrastructure and increase the country's compe
Meanwhile, the Budget Bureau will apply an integrative budgeting strategy for fiscal 2017, which starts next October, in a move aimed at increasing its efficiency in terms of resource spending and government agencies’ collaboration towards the same seven national-development strategies.
"I believe that under the current economic situation and current financial status, a budget deficit is not a problem because our public debt is very low but our principle is to avoid creating any unnecessary debt," he told reporters at the Budget Bureau building yesterday.
The 2016 fiscal year has a Bt2.72-trillion budget, with a deficit of Bt390 billion on expected revenue of around Bt2.33 trillion.
The investment budget through to September 30 next year was set at Bt543.635 billion, which is Bt94.16 billion or 20.9 per cent more than for the 2015 fiscal year. Fiscal 2015 carried around Bt250 billion worth of deficit.
"Nevertheless, if we want our economy to be strong enough, and the country is currently developing, then it [a budget deficit] is sometimes necessary," said Somkid.
Budget Bureau director Somsak Chotrattanasiri said the integrative budget-planning strategy for fiscal 2017 would concentrate on tackling problems and enhance development in six areas: national security, economic competitiveness, labour efficiency, poverty reduction via promotion of the local economy, management of natural resources, and anti-corruption.
Somkid has also urged the bureau to add preparation for an increasingly ageing society as another strategic agenda item for government agencies, said Somsak.
The integrative plan is to make sure there is no overlap in budget spending and to increase efficiency in terms of the use of limited resources by ensuring that agencies’ investments and spending are heading in the same direction, and that their efforts are collaborative instead of being a matter of ministries just proposing their own spending ceilings, he explained.
"This is to prevent the problem of over-allocation of budgeting and resources," he added.
Government agencies are now tasked to come up with a "pre-ceiling" budget spending plan for fiscal 2017 based on the seven strategic agendas, before proposing the plans to the seven new subcommittees that will be set up by the bureau, and then presenting them to Somkid by December 18.
The pre-ceiling budget will then be proposed for approval by four agencies – the Office of the National Economic and Social Development Board, the Budget Bureau, the Finance Ministry and the Bank of Thailand – before the draft budget for fiscal 2017 can be put up for final Cabinet approval on May 3, and eventual consideration by the National Legislative Assembly by June 2.
The Budget Bureau director also said that the disbursement of fiscal 2016 investment spending was already better than that achieved in fiscal 2015, as 4 per cent of the budget had been disbursed since October 1, compared to just 1 per cent in the same period during the previous fiscal year.
