KBank Subsidiaries and ASEAN Economic Strategy
K
KASIKORNTHAI
Sources and Uses of Public Funds
FY2020 Budget
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
Implementation of FY2020 budget is experiencing delays from October 1, 2019 to 1Q20, due to political reasons. FY2020 budget
act was approved in January and was published in the Royal Gazette on February 24.
Budget Planning
Tax Revenue +
Non-Tax Revenue
(Bt2.73trn)
+
Borrowing under
FY2019 Budget Act
(Bt469bn)
FY2020 Budget
(Bt3.20trn)
=
General Budget
(Bt2.46trn or 77%)
+
Investment Budget
(Bt0.66trn or 20%)
+
Principal Repayments
(Bt0.09trn or 3%)
Budget Execution
Budget
Disbursement
(100% target
disbursement rate
+
carry-over)
General Administration
(Bt1.18trn or 37%)
■ Defense
■Homeland security
Economic Affairs
(Bt678bn or 21%)
Development of the country's
competiveness
■ Subsidize SOES
(e.g. Infrastructure project, free
bus and train service policy)
■Infrastructure/Agricultural
Development
Social and Community
Services (Bt1.34trn or 42%)
■ Education
■ Universal Healthcare
Extra-Budget
Borrowing under
Extra-Budget Borrowing
Special Act/Decree
To relieve the impact of the
COVID-19 outbreak, the
government approved
emergency decree that allows
the Finance Ministry to borrow
up to Bt1.0trn
Notes: Thai government's fiscal year (FY) begins on 1 October and ends on 30 September of the following year.
IFF = Infrastructure Fund, PPP = Public-Private Partnership, SFIs = Specialized Financial Institutions
Quasi-Fiscal Instrument
SFIs taking deposits,
borrowing, as well as
government subsidy
Quasi-fiscal
activities
(e.g Soft Loan
Program)
บริการทุกระดับประทับใจ
137
K
KASIKORNTHAI
Government Fiscal Budget
Billion Baht
1200
1000
600
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
◉ Thai parliament approved FY2020 budget worth Bt3.2trn, with a
deficit of Bt469bn
800
600
163
100
400
200
450
390
450
469
390
■
0
FY2016
■Budget Deficit
FY2017 FY2018 FY2019 FY2020F
Extra-Budget Borrowing
Key Points
Economic
Implementation of FY2020 budget effective February 2020
To relieve the impact of the COVID-19 outbreak, the government
approved an emergency decree allowing the Finance Ministry to
borrow up to Bt1trn (Bt600bn for FY2020 and Bt400bn for FY2021),
of which Bt600bn will be used for relief measures and public health
and Bt400bn will be spent on economic recovery measures
In addition to growth in commercial bank loans, government
funding activities may affect system liquidity
Policies
■2019 Budget Act
■2020 Budget Act
■FY2019 budget at Bt3trn with a
deficit of Bt450bn
■FY2020 budget at Bt3.2trn with a
deficit of Bt469b
Implementation Process
FY2019
■ Effective date: October 1, 2018
FY2020
■■Effective date: February 24, 2020
Possible Impacts/
Expected Budget
■Government spending will help
maintain economic momentum
■Fiscal sustainability to remain
manageable in near-term; however,
continued debt creation, both from
budget deficit and other borrowings,
may impact long-term fiscal
sustainability
Note: FY2016, FY2017, FY2018, and FY2019 budget deficits are based on budget documentation, whereas extra-budget borrowing is projected by KResearch
- Thai government's fiscal year (FY) begins on October 1 and ends on September 30 of following year
- NLA National Legislative Assembly; PPP = Public-Private Partnership
Sources: The Ministry of Finance and KResearch (as of May 2020)
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