Korn Proposes 10% Budget Cut to Overhaul Fiscal Structure
Korn Chatikavanij proposes a 10% cut to the 3.788 trillion baht FY2070 budget, urging the Cabinet to reallocate funds and fix structural tax issues.
Stock photo for illustration only, not from the actual event
- Korn Chatikavanij proposes a 10% across-the-board cut to the 3.788 trillion baht FY2070 budget
- Highlights 5 key areas: education, aging society, household debt, productivity, and technology
- Points out that 99% of state revenue comes from working citizens while only 1% comes from the ultra-rich
- Warns that sticking to conventional mindsets will lead the country into a permanent budget trap
During the parliamentary debate on Article 4 of the Fiscal Year 2070 expenditure bill totaling 3.788 trillion baht, list-MP Korn Chatikavanij from the Democrat Party proposed a 10% reduction in the overall budget. He clarified that the intention was not merely to shrink total government spending, but to create fiscal room for the Cabinet to reallocate those funds toward the country's most pressing and genuine needs.
Korn outlined five critical areas that the government must prioritize: 1. Education, 2. An aging society, 3. Household debt, 4. Productivity, and 5. Adapting to rapid technological disruptions. He emphasized that the current fiscal strain is not entirely the fault of the current administration, but rather a long-standing structural crisis involving both budget allocation and state revenue generation.
Addressing government spending, Korn argued that authorities cannot justify funding shortfalls by claiming insufficient resources, especially after increasing state borrowing by 400 billion baht through an emergency decree. Instead of directly aiding citizens, those funds were channeled into conventional projects like procuring supplies and solar panels rather than tackling structural problems.
"If we cling to the same old mindsets—whether regarding tax structures, the role of foreign entities in the economy, state enterprise equity, or regulations—we can never expect new outcomes."
Regarding state revenues, Korn noted that government revenue relative to GDP has steadily declined to 14%. Furthermore, over 99% of tax revenue is collected from working citizens, while a mere 1% comes from ultra-wealthy individuals, exposing deep structural flaws in the tax system. With economic growth stagnant at around 2%, he stressed the urgency of addressing these foundational issues.
From an economic standpoint, a declining revenue-to-GDP ratio alongside rising fixed expenditures highlights growing fiscal vulnerability. While an across-the-board budget cut can create immediate fiscal space, the ultimate challenge lies in strategic project selection and cross-ministerial integration to tackle deep-seated challenges like an aging population and household debt, which ultimately requires comprehensive tax reform.
Concluding his remarks, Korn warned that maintaining conventional economic approaches—including outdated tax frameworks, state enterprise policies, and rigid regulations—will inevitably trap the nation in a recurring budget crisis, placing the heaviest burden on low-income earners and the elderly.
Source: Matichon Politics
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