Conflict, Legitimacy and Government Reform: Equitable Allocation of ...
Conflict, Legitimacy and Government Reform: Equitable Allocation of ...
Conflict, Legitimacy and Government Reform: Equitable Allocation of ...
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56 KPI Congress XI<br />
suggested that Thai government must increase the number <strong>of</strong> people who<br />
should pay income tax <strong>and</strong> types <strong>of</strong> direct tax should be exp<strong>and</strong>ed,<br />
instead <strong>of</strong> depending on indirect taxes like in the past. Novel direct taxes<br />
like inheritance tax, property tax <strong>and</strong> capital gain tax must be featured as<br />
a vital component <strong>of</strong> fiscal policy reform. In addition, measures must be<br />
taken to eradicate tax evasion <strong>and</strong> frauds.<br />
Public expenditure <strong>and</strong> income distribution<br />
If we look back in our history, we will find that public expenditure<br />
<strong>of</strong> Thai governments (resource allocation from tax revenue <strong>of</strong> the<br />
country) has changed drastically (see Table 7).<br />
Table 7: Public expenditure <strong>of</strong> Thai government:<br />
Percentage <strong>of</strong> annual expenditure<br />
Year Military Education<br />
Royal<br />
household<br />
Public<br />
health<br />
Economy<br />
Social<br />
security<br />
1892 26.0 2.0 29.0 n.a. n.a. -<br />
1900 14.0 4.0 22.0 n.a. n.a. -<br />
1910 24.0 2.0 18.0 n.a. n.a. -<br />
1920 27.0 3.0 12.0 n.a. n.a. -<br />
1930 20.0 7.0 8.0 n.a. n.a. -<br />
1935 27.0 11.0 2.0 n.a. n.a. -<br />
1941 36.0 10.0 0.6 n.a. n.a. -<br />
1945 51.0 5.0 0.4 n.a. n.a. -<br />
1950 28.0 11.0 0.6 n.a. n.a. -<br />
1961-65 17.4 28.0* n.a. 25.3 -