Land auctions prove lucrative for Treasury

The Treasury Department has reported its highest revenue collection in nearly a century due to greater numbers of land lease auctions and renewals of major lease contracts.
Deputy Finance Minister Paopoom Rojanasakul yesterday announced the revenue collection results of the Treasury Department for the 2024 fiscal year, which ended on Sept 30, stating that a total of 14.4 billion baht had been collected, marking a 57.9% increase from the previous year.
This exceeded the target by 25.4%, the highest in 91 years, and a record since the department’s establishment. This outcome was due to the expedited land lease auctions nationwide and the strategic renewal of major lease contracts, which increased rental income, Mr Paopoom said.
There are currently 225,820 state land leaseholders, with 86% under social leases to support low-income earners and farmers, and 14% under commercial leases. In terms of revenue, 98% of the Treasury Department’s income comes from commercial leases, while social leases account for 2%.
The Treasury Department has provided low-cost state land leases for residential and agricultural purposes to assist the public, particularly through the “Thanarak Eua Rat” (the Treasury supports the public) project.
The department aims to increase the utilisation of state property by 9-10% annually by speeding up the reclamation of underused land held by government agencies. In the 2024 fiscal year, around 24,000 rai of the land plots have been reclaimed, which will contribute to future revenue growth.
According to Mr Paopoom, the Treasury Department aims to generate total revenue of 55 billion baht to be contributed to the national treasury over a five-year period from 2023 to 2027, meaning the department must collect at least 10 billion baht annually.
The plan is to accelerate the increase of rental rates for commercial leases in the private sector, aiming to set rents equivalent to a return on assets, now at 3%. However, the policy of providing discounted rents for individuals leasing land for residential and agricultural purposes will continue.
In the 2025 fiscal year, the Treasury Department will continue the Thanarak Eua Rat project, providing low-cost land leases to citizens across the country. The goal is to improve, speed up, and expand the project to enhance housing and livelihood security for citizens on low incomes, said Mr Paopoom.