Korn slams biggest budget in Thai history
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The 2013 Budget Bill yesterday was carved up by party-list MP Korn Chatikavanij of the Opposition Democrat Party, who slammed it as the highest spending in history, which includes a policy on corporate income tax cut that favours big business.
As deliberations on the final passage of the 2013 Budget Bill started yesterday, members of the Democrat Party were lined up on the first half of the day, proposing trimming of 5 per cent from the budget’s set spending plan of Bt2.4 trillion. On top of this, about 42 per cent of debt to gross domestic product (GDP), will tend to rise continuously.
Korn said that he was concerned about the spending plan, which is considered the largest budget ever, while projection for revenue was about Bt2.1 trillion. That implied a deficit of Bt300 billion. Consequently, the government would have to borrow to make up the shortfall.
A study of the 2013 Budget Bill also found that government influence had been behind a majority of house committees on this matter, he said.
He believed that the estimated revenue of Bt2.1 trillion for 2013 would be collected from the public unfairly, as the corporate tax-cut policy – from 30 per cent to 23 per cent – would favour capitalists, and that would mean a loss of income of up to Bt150 billion.
“It is most likely that the government will collect more taxes from other [sources],” said Korn, asking that the government consider raising taxes from the richest sectors of the community instead.
He was also concerned about off-budget proposals, such as the use of a credit loan set at Bt350 billion, which he feared could not be spent. He understood that only Bt1 billion had gone towards resolution of the flood situation.
“When will this budget be used and will it be able to prevent possible flooding by the end of this year?” Korn asked.
In addition, he asked the government to revise its ideas, return its focus to helping people so they can stand on their feet and have a responsibility to their families. “Ministers do not need to quit from positions in cases of mistakes. But they should review some projects such as rice pledging,” said Korn.
Phongsri Tharabhumi, a member of a minority house committee from the Democrat Party, said that some projects under the Budget Bill of 2013 were not clear, while some showed little time had been given for deliberation. Some proposals for the budget have no details, boards of directors and legal endorsement. Some projects appeared in duplicate budgets.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong, as chairman of the extraordinary house committee on deliberations of the 2013 Budget Bill, conceded that the budget allocation offers the highest spending in history. However, this amount is only Bt20 billion higher than the spending budget of 2012, he said.
“The increased budget was set in line with essential spending. The government is confident it is following the fiscal policy austerely and the revenue set at Bt2.1 trillion will not make the public suffer. Spanning of the personal income tax base is still in a position to proceed,” Kittiratt said.
The corporate income tax cut policy, he said, was not a favour for capitalists, but would increase the private sector’s competitiveness. Currently, other countries’ corporate income taxes were much lower than those of Thailand.
He insisted there were no duplicated items in the budget allocation and the government would spend the budget efficiently.
