On the other hand, tax revenue increased from 1,755 million kips in 1986 to 37,644 million kips in 1990, showing 115 percent average annual growth. Non-tax revenue was 16,748 million kips in 1986, 23,316 million kips in 1990, showing 62 percent annual average growth. Among tax revenue, profit tax revenue jumped from 195 million kips in 1986 to 7,956 million kips in 1990 because of the introduction of the profit tax. Tax on international trade revenue also increased sharply from 197 million kips in 1986 to 18,035 million kips in 1990 because of trade liberalization. Transfer from state and public enterprises, one of non-tax revenue, totalled 13,890 million kips in 1986, but it was abolished and hence brought in no revenue in 1990. Introduction of profit tax could not take over the role of the abolished transfer from public enterprises. “Miscellaneous” non-tax revenue increased from 1,808 million kips in 1986 to 12,427 million kips in 1990.

Non-tax revenue is divided into two revenues by the character, “revenue from sale property” and “revenue from privatization.” The former includes interest payments, and the rent of land, building and construction to the government by the state enterprises. The latter consists mainly of sales of state enterprises and dividends, stemming from the fact that the government participates in joint enterprises with foreign private sector. Due to the start of the IMF / World Bank Structural Adjustment Loan (SAL), expansion of the proportion of “miscellaneous” revenue is expected.

Although the budget deficit has been decreasing (20.1 percent, 16.8 percent, 13.8 percent, 10.8 percent, 9.5 percent through 1988-92), and the ratio of deficit to revenue was still at a high 43 percent in 1992, the deficit was still sharp. Though non-tax revenue accounted for around 90 percent of total revenue by 1987, tax revenue accounted for around 70 percent after the tax reform. But the proportion of total revenue in the ratio of total revenue to GDP has grown very slightly, at 8.4 percent, 10.2 percent, 10.5 percent, 10.9 percent in the period from 1989 to 92 (see Table 2-III-2). Total revenue, composed of tax and non-tax revenue, is not enough to finance even the current expenditure without foreign assistance. Capital expenditure is still heavily dependent on foreign assistance. This is exactly the same situation as before the reform.

## (4) External Trade

Trade deficits has been huge: export growth rates from 1989 to 93 were 9.5 percent, 24.3 percent, 22.7 percent, 37.3 percent, 10.6 percent each year. Imports, after a negative growth of -4.3 percent in 1990, increased to 13.1 percent in 1991, and 16.5 percent, 20.5 percent in 1992 (see Appendix 5, Appendix 6). In 1992 export totalled 132.6 million dollars, imports equaled 265.6 million dollars, creating a deficit of 133.0 million dollars. The deficit stayed about the same level as the previous year, 131.4 million dollars. Export values decreased due to the reduction in volume of sales of electric power caused by increasing domestic demand and of the lower export prices from Thailand. The main export item were: logs and wood products (42.7 million dollars in 1992), electric power (17.0 million dollars), industrial production, such as metals and textiles, (29.5 million dollars), and coffee (2.4 million dollars). Exports to Thailand amounted to 26 million dollars, most of which was of logs and electric power.

## (5) Employment

In 1990, the employment structure broke down as follows: agriculture employed 1.545 million persons (79 percent), industry had 37.3 thousand persons (1.9 percent), construction