Revenue Shortfalls Research Articles

The present and future of road Financing: Leveraging knowledge from the tolling industry to implement road-usage charge programs in the u.s

Historically, transportation funding in the United States has been supported primarily by motor fuel taxes. In recent years, revenues from fuel taxes have been shrinking. In response to the revenue shortfalls, many states have launched pilots or full-scale programs of road-usage charge (RUC) as an alternative to motor fuel taxes for transportation funding. Some of the challenges facing RUC is the cost of implementation compared to traditional motor fuel taxes, operational complexities, and the equity concerns (Caltrans, 2017). To address these challenges, states are looking to leverage existing vehicle-level pricing programs, such as road tolling, to learn about synergies between RUC and tolling. In this paper, we conducted semi-structured interviews with experts from tolling programs across the U.S. to identify areas of overlap between tolling and RUC. We built upon the interview findings by conducting a multi-criteria decision analysis (MCDA) to evaluate how well the state-level RUC pilots and programs can integrate with tolling systems. Our results demonstrate that there are numerous mutual benefits of a RUC-tolling integration. Both the tolling industry and RUC implementations can benefit from the increased scale of operations and the spur of technical innovations, which would reduce administrative costs. RUC programs can also learn from the tolling industry to address data privacy and security issues. In terms of policy and program designs of RUC, it is essential to design RUC rates which are equitable by considering the financial burdens on low-income populations and ensuring access to the system for the unbanked and underbanked populations.

Determinants of Financial Shortfalls in State-Owned Railway Systems: An Ardl Approach for Sri Lanka Railways

Sri Lanka Railways (SLR) has been experiencing a financial shortfall since the 1940s, characterised by operational expenditure exceeding total revenue. This study aimed to identify the critical determinants of the financial shortfall of Sri Lanka Railways (SLR) using an econometric approach. Employing a quantitative methodology, the study utilised secondary and manipulated data from 1977 to 2022 to examine the effects of four key variables: revenue shortfall from fare revisions (FRFR), subsidised season tickets (FRSS), freight transport volume (FTK), and total wage bill (WB), incorporating the general price level (CCPI) to account for inflation. The regression analysis, using the Auto Regressive Distributed Lag Model, identified a short-run relationship between the financial shortfall (LFS) and lagged variables, including the volume of rail freight transport (LFTK), total employee wage bill (LWB), and the general price level (LCCPI). A long-run relationship was found among revenue shortfall from fare revisions (LFRFR), LWB, LCCPI, and LFS. The findings highlight the significant impact of aligning railway fares with bus fares and managing employee expenses on SLR's financial shortfall. Additionally, the revenue shortfall from subsidised season tickets showed a significant relationship at a 10% significance level, both short-term and long-term. The study underscores the necessity of revising railway fares in line with bus fares to enhance revenue and ensure financial sustainability. Optimising employee-related costs through effective management and reviewing the subsidy structure for season tickets are also recommended. Furthermore, investment in capacity and facility development for freight transport is crucial for mitigating long-term financial shortfalls.

Crude credit: The political economy of natural resource booms and sovereign debt management

Oil, gas, and minerals have notoriously adverse effects on institutional quality. But when global liquidity is high, risk-tolerant investors are more willing to lend to all borrowers, even resource-rich countries with low-quality institutions. Despite the availability of cheaper credit during commodity booms, we argue that countries do not increase current borrowing to mitigate future revenue shortfalls during commodity busts. Instead, they rely on resource windfalls to meet their current financing needs, fearing they would otherwise forfeit national policy discretion to global financial markets. We leverage primary evidence from extensive field research across five Latin American countries to show that national economic officials (i.e. finance ministers and central bank governors) are wary of high indebtedness, after past commodity booms ended in cycles of lofty spending, borrowing, and default. For sovereign borrowers, high bond market indebtedness often reduces government discretion over economic policy, whereas windfalls increase it; all else equal, governments will favor the latter. Using data on 22 Latin American and Caribbean countries from 1996 to 2020, we find that governments issue bonds less frequently, in smaller amounts, as their oil and gas production or GDP share from resource rents increases. These findings make an important contribution to our understanding of how commodity cycles affect global capital markets: sovereign borrowers do not fully leverage commodity booms to expand their fiscal space to finance more spending over time.

Comparative Analysis of Budget Performance in Nigeria: Pre and Post-Covid-19 Impact

This research investigates the pronounced impact of the Covid-19 epidemic on Nigeria's fiscal performance, evaluating the budget dynamics both before and after the pandemic. The findings reveal a persistent pattern of budget underperformance characterized by revenue shortfalls and a reliance on international loans for budget implementation. This is a notable trend, considering Nigeria's status as an oil-producing nation. The study underscores a concerning aspect wherein the country, traditionally recognized for its oil wealth, finds itself in the paradoxical position of servicing significant debt. The fiscal challenges, exacerbated by the pandemic, have necessitated a closer examination of economic policies and their implications. In response to the economic fallout, the Nigerian government enacted the Economic Sustainability Plan (ESP, 2020) as a comprehensive post-Covid-19 recovery strategy. While this plan holds promise for economic revitalization, the effectiveness of its accompanying policies in addressing the root causes of fiscal challenges remains a crucial aspect to monitor. As the nation grapples with the aftermath of the pandemic, there is a pressing need for meticulous policy implementation to ensure that the Economic Sustainability Plan not only alleviates immediate economic concerns but also serves as a catalyst for long-term, inclusive, and sustainable economic development. This study contributes to the ongoing discourse on Nigeria's economic resilience in the face of external shocks, emphasizing the imperative of sound fiscal management and policy efficacy for a robust recovery.

Filling the fiscal basket: Quantifying tax revenues from customer loyalty programmes

The South African government is experiencing a significant shortfall in tax revenue, and recent research has identified customer loyalty programmes (CLPs) as a potential revenue stream. Despite the popularity of these programmes, which are used by 73% of economically active South Africans, no tax is currently imposed on the rewards received by customers, resulting in the loss of much-needed tax revenue. This paper quantifies the tax revenue that could have been generated by South Africa’s three most-used CLPs over a five-year period (2018–2022) to determine if a tax on CLP rewards is a viable revenue stream for the fiscus. The longitudinal instrumental case study employed demonstrates that the fiscus could have conservatively collected R1 140 753 042 in total tax revenue from the three CLPs if a tax had been imposed on CLP rewards, as proposed in this paper. This paper highlights the significant revenue potential of taxing CLP rewards, and it provides valuable insights for policymakers who seek to address the country’s revenue challenges. The findings reveal the magnitude of potential contributions to tax revenue in the form of CLPs. Given the impetus behind CLPs, their exponential growth rate and their increasing importance as a marketing strategy, this paper proposes a re-evaluation by policymakers of the taxation of CLP rewards.

Does Culture Matter in the Tax Compilance Behaviour of SMEs? Evidence from Ghana

Several studies have shown that culture affects individual ethical behaviour, but very few studies have looked at the cultural influences of Small and Medium Enterprises (SMEs) on their tax compliance practices. Tax non-compliance has been a major cause of revenue shortfall in many nations including Ghana. SMEs represent the majority of businesses in Ghana, thus non-compliance by SMEs may be the major cause of revenue shortfalls in the country. Scholars have adduced various factors for the non-compliance. Although some of these studies examine how specific cultural values impact tax compliance, there has not been any research in Ghana that examines the possibility of culture impacting SMEs’ tax compliance usingmajor national frameworks such as Hofstede Cultural Dimension theories. The paper uses Hofstede’s (2001) Cultural Dimension theories to examine the relationship between Ghanaian culture and the tax compliance behaviour of SME operators. Data were gatheredthrough a survey of 211 SMEs in the two major regions in Ghana, and analysis was conducted with structural equation modeling and ordinary regression. We found that the SME Owners exhibited some moderate levels of tax compliance behaviours. Again, SMEs arecharacterised by a high degree of uncertainty avoidance, a culture of femininity, a high degree of power distance, a long-term orientation, and a collectivist culture. The findings suggest that the power distance and longterm orientation cultures of SMEs accounted for their tax compliance behaviour. The study also found that older businesses that were very acquainted with the Ghanaian Culture were less likely to be tax-compliant than newer firms. This paper presents the Ghanaian perspective and bridges thecontext and issue gap identified in the body of knowledge.

Beware telltale signs of board dysfunction

Just as a for‐profit company or nonprofit organization will have clear signs of dysfunction when things aren't right—think shortfalls in revenue, a lack of progress toward goals or high staff turnover, for example—so will a board of directors, according to Nick Holder of Boardshape, a provider of board meeting and communications management software.

Tax incentives for investments in NPOs in a mobilization economy

The subject of the study is the mechanism of tax incentives for non-profit organizations in the context of a special military operation. The paper examines the importance of NGOs in this context, the main trends in the development of the non-profit sector, as well as possible measures of tax incentives for NGOs to solve primary social problems. The author focuses on the central place of non-profit organizations in the mechanism of ensuring financing of the needs of the state and society, as well as the high degree of importance of the non-profit sector in providing social services to the population, combating emerging challenges in the social sphere. Special attention is paid to the development of proposals on tax incentives for charity from legal entities in terms of corporate income tax and value added tax. The main research methods used are analysis and synthesis, analogy and description, induction and deduction, statistical grouping. The scientific novelty of the work consists in the formulation of specific proposals for changing the current tax legislation to create a mechanism for additional financing of priority social areas and providing the necessary end beneficiaries in a mobilization economy. The proposed mechanism is based on the introduction of new tax incentives for the implementation of charity and the functioning of non-profit organizations, with special attention to the targeting and precision of the proposed measures. Based on the results of the work, a conclusion is made about the effectiveness of the proposed legislative changes based on the calculation of shortfall in state budget revenues and the allocation of advantages of these proposals. In addition, attention is paid to the wide possibilities of the described measures of tax incentives for charity due to the options initially laid down for varying categories of goods subject to tax preferences, depending on the social context and priorities of the state in a certain period of time.

Analysis of the practical implementation of the mechanism of unaccountable form of VAT calculation

In the author's scientific article "The need and prerequisites for conducting an unaccountable form of VAT calculation", potential opportunities for the practical application of a new concept of VAT calculation, the essence of which is to simplify the calculation procedure, consisting in the abolition of a number of requirements, rules and procedures. The tax authorities will only issue electronic invoices, according to which the authorities will calculate the tax automatically. The new concept will entail a change in the procedure for calculating tax and its administration, which may lead to incorrect calculation of tax and may cause an increase in shortfall in state revenues, which requires a preliminary calculation of such losses. Since there are many rules and benefits, losses can be obtained from each such factor, which requires an analysis of state revenues for each article. The purpose of this work is to identify VAT transactions with the maximum risk of incorrect calculation of VAT by the tax authority on the invoice. The main conclusion in this work is the presence of risks of incorrect filling of the taxpayer's invoice and calculation of tax by the tax authority at the level of 30%, which is explained by the fact that about 70% of invoices do not contain features and subtleties, but are compiled as a general rule in the form of applying a tax rate of 20% to each sale according to the corresponding the invoice. However, these risks can be minimized by minor revision of the invoice without significant addition of new details, since each additional detail entails the risk of incorrect filling in, which increases the likelihood of erroneous registration of the document.

FURTHER STUDIES ON THE PHENOMENON OF TAX OPTIMISATION VERSUS TAX EVASION - THE SCOURGE OF CONTEMPORARY SOCIETY

In this paper we aim to study the phenomen of tax evasion and tax optimization at the European Union level, in particular on value added tax, in order to outline the concept of the VAT revenue shortfall and to identify its determinants. Tax evasion is a complex and persistent problem faced by most countries around the world. This harmful practice affects the budgets of countries, reducing their revenues and jeopardising the sustainability of tax systems. Either tax evasion or tax optimisation both have the same strategic objective, namely to reduce through legal or illegal means the financial resources allocated to the state budget as taxes or duties. In order to ensure that we achieve the above-mentioned goal, we have set ourselves the objective of carrying out a study in EU member countries on the determinants of the VAT gap.

Bi-level goal programming model for simultaneous microgrid investment and tariff design: A case study in the Volta Region of Ghana

The use of microgrids for remote rural electrification in developing countries requires solutions to technical and financial constraints involving variability in renewable generation and electricity demand, budget limitations, and underlying electricity tariffs. While previous research has evaluated a subset of these problems, to the best of the authors’ knowledge, no attempt has been made to design an optimal tariff structure that promotes an isolated microgrid’s business case for rural electrification. This work presents a new goal-oriented bilevel optimization model capable of simultaneously optimizing the microgrids tariff design–to offer full revenue recovery for the investor while also ensuring equitable electricity prices for low-income households–as well as optimizing the physical microgrid design. A case study of an off-grid island on Ghana’s Volta Lake demonstrates the efficiency of the new tariff design over the existing policy. For a remote rural village, a 6kW solar PV, 5kW wind and 11kW diesel microgrid provide the highest lifecycle electricity supply adequacy at the lowest investment cost. Through scenario analysis, we demonstrate the implementation of an optimal tariff design capable of offsetting a 39 % revenue shortfall compared to an existing tariff structure while ensuring equitable electricity prices for low-income households.

ФІНАНСОВИЙ КОНЦЕПТ БІХЕВІОРИСТИЧНОГО ПІДХОДУ ПРИ ФОРМУВАННІ ДОХОДІВ ДЕРЖАВНОГО БЮДЖЕТУ УКРАЇНИ

This study draws attention to a novel approach to shaping the revenues of the State Budget of Ukraine. To shed light on the situation concerning revenue formation, a quick analysis of Ukraine's key macroeconomic indicators, including budget revenues from 2017 to 2021, was conducted. As a result, trends in the dynamics of GDP, essential social standards, inflation, average wages, and the unemployment rate were revealed. It was highlighted that in some years, the minimum pension level was lower than the inflation rate, which is a concerning development. The behavioral approach, with specific reference to the application of its individual provisions in the budgeting process, is explained in detail. An interpretation of the key concepts of this approach, encompassing economic activity and economic interests, is provided. It is argued that the application of the behavioral approach allows for the identification of motives behind inefficient income planning at various stages of State Budget preparation. Furthermore, it enables the consolidation of the motivational interests of specific participants in the budget project. An important advantage of this approach is the potential to formulate preventive measures to mitigate corruption issues during the various stages of the budget process. The primary components of the financial concept were developed utilizing relevant theoretical constructs in revenue formation for the budget. This concept consists of six parts, which include fundamental theoretical constructs, taking into account the psychological traits of the Ukrainian populace, identifying reserves in State Budget revenues, risk mitigation, enhancing the revenue mechanism, and increasing the involvement of public organizations in the budget process. The rationale for employing fundamental theoretical constructs in the budget preparation process, notably new monetarism, sustainable development, neoclassical synthesis, and the theory of happiness, is discussed. Special attention is given to considering the psychological characteristics of the Ukrainian people, which can aid in the development of optimal budget revenues. To mitigate potential revenue shortfalls, preventive measures are proposed. Notably, there's a strong emphasis on improving the mechanism for revenue formation and collection, underscoring the need to enhance the accountability of regulatory body personnel. The wisdom of increasing the participation of public entities in the budget process is justified. Furthermore, it is recommended that reasoned proposals regarding budget revenues be submitted by scientific institutions, sector-specific public organizations, and analytical agencies. In conclusion, it is posited that the proposed financial concept, grounded in a behavioral approach and accounting for the realities of the Postmodern era, will contribute to an increase in revenues for the State Budget of Ukraine.

An analysis of the statutory measures adopted to curb tax evasion in Nigeria after the COVID-19 pandemic

The damage caused by the coronavirus disease (COVID-19) pandemic to the fragile Nigerian economy is incalculable. The Nigerian economy was further weakened by the corruption of government officials involving the palliative measures put in place to provide financial relief to companies and individuals affected by the COVID-19 pandemic. Since the Nigerian economy relies mostly on crude oil revenue, its focus on tax is less emphasised and tax evasion is pervasive. Consequently, the Nigerian tax on gross domestic product (GDP) is only about 6 per cent. This article examines the adequacy of the legal and/or statutory measures aimed at curbing tax evasion in Nigeria. The post-COVID-19 revenue shortfall has made the Nigerian federal and state governments raise the existing taxes, introduce new taxes, and adopt more aggressive tax collection methods. Consequently, taxpayers now use tax exemptions and incentives as devices for tax evasion. Moreover, there is rampant non-remittance of tax proceeds by government ministries, departments, and agencies to the tax authorities. Thus, despite the introduction of various laws, policies, and directives to curb tax evasion, especially after the COVID-19 pandemic, tax evasion challenges still persist. Accordingly, it is submitted that good governance, integrity, and transparency in handling public funds are required to reduce and combat tax evasion in Nigeria.

Airlines Operating Cost and Revenue: The Case of the Cameroon National Airline

This paper attempts to provide a unique opportunity to calculate Cameroon domestic air transport operating cost and revenue. I explicitly introduce in my cost function the route distance of the domestic network in which carriers provide their services. Due to the declined in the domestic air transport routes in Cameroon, I proposed a hub-and-spoke network which influenced the operating revenue. My results, therefore, indicated that only two out of eleven routes are profitable. Consequently, to prevent huge shortfall in airlines revenues, I argued for the creation of the Domestic Network Sustainability Trust Fund.

Effects of intergovernmental revenue on local government draw on fiscal reserves: evidence from COVID-19 fiscal stress

ABSTRACTThis study investigates the effects of receipt and anticipation of intergovernmental revenues on local governments draw on accumulated fiscal reserves to cushion the impacts of COVID-19-related fiscal stress. Several studies have been conducted on determinants of fiscal reserves accumulation. However, little is known about the determinants of government draw on fiscal reserves, beyond revenue shortfall, in times of fiscal stress. Dwelling on the premise that government’s draw on fiscal reserves is influenced by factors beyond revenue shortfall and controlling for the effects of revenue shortfalls and other factors, we analysed local government survey data to determine the effects of intergovernmental revenue on government draw on fiscal reserves. Results show that draw on fiscal reserves is significantly constrained by percent of FY 2020 revenue received from federal and state governments, but significantly and positively influenced by revenue losses and percent of FY 2021 revenue anticipated from federal government.

Breaking the cycle of corruption in Nigeria's electricity sector: Off-grid solutions for local enterprises

Access to electricity is a major constraint to economic growth in Nigeria. Small and medium enterprises (SMEs) are arguably the segment of the Nigerian economy most disadvantaged by a lack of access to reliable power. Due to the failure of grid-based supply, over 80 % of SMEs rely on a generator to power operations. Inclusive, diversified growth in the country depends on growth of the SME sector. This paper examines how SME grid access can be improved given the technical inefficiencies and systemic corruption in the sector. In line with the political settlements framework we provide a macro-analysis of the sector which helps address and identify a solution for the main research problem of how to solve the power constraints Nigerian SMEs face. Our research, conducted between 2018 and 2019, but still valid currently, as the features we describe have not evolved substantially, identifies that the reasons for the failure of grid-based supply is a combination of interdependent factors. Technical inefficiency in the grid is high. Revenue shortfalls have also resulted in extensive government bailouts. These inefficiencies are compounded by ‘legacy’ and recent corruption that has led to poor maintenance of the transmission network during state-ownership and to the presence of politically-connected bidders in the recent privatisation efforts, leading to sub-optimal outcomes. Any solution for SMEs has to take this sectoral configuration into account. Our strategy is supported by focus groups discussions and interviews with over 30 clustered firms in the South Eastern SME hubs of Onitsha, Aba, and Nnewi.

Review of “You’re Paid What You’re Worth And Other Myths of the Modern Economy”

In December of 2022, one of the largest strikes in US history was resolved after 48,000 academic workers represented by the United Auto Workers (UAW) signed new agreements with the University of California (UC) system. The academic workers argued for large increases in pay by comparing their current stipends and salaries with the pay of highly educated workers outside of academia, the pay of academic workers in peer universities, the cost of living near the UC campuses, the price of other high-ticket items in the UC budget, and the value of the workers’ contributions to research and teaching missions. Negotiators for the UC system pointed to budget constraints and tradeoffs, including the specter of cuts to the number of academic workers (a disemployment argument) and large revenue shortfalls that would require raising tuition. In the end, academic workers’ pay increased, but not by as much as they requested. The UAW strike and the claims of each party illustrate the rhetoric often deployed in contests surrounding pay and “merit” in the US labor market. Jake Rosenfeld’s meticulously researched “You’re Paid What You are Worth, and Other Myths about the Modern Economy” (YPWYW) unpacks the pay-setting processes behind this rhetoric. His core argument is that worker pay is not the result of a careful, systematic, or accurate measurement of an individual worker’s productivity or contributions to their organization. Rather, it is the outcome of the interplay of power, norms of fairness, equity, and legal and institutional arrangements under capitalism. Indeed, the notion that you are paid “what you are worth” becomes a cultural trope that justifies large disparities in pay among workers, even those doing similar jobs, and makes them seem natural and inevitable.

Effect of External Debt on External Reserves in Nigeria

It is widely held that developing nations are constrained by insufficient funds to build basic infrastructure that would set the pace for capital formation and sustainable growth. Faced with shortfalls in revenue and the need to increase investment in public works, developing countries engage in deficit spending to bridge the gap in funding public expenditure. One source of deficit spending is external debts. This study investigates the effect of external debt on external reserves in Nigeria from the first quarter of 2009 to the fourth quarter of 2022. An ex post facto research design was adopted for the study. Quarterly time series data for external reserves, multilateral debt, and bilateral debt were collected from the Central Bank of Nigeria statistical bulletin and Debt Management Office reports. Philip Perron test was used to test the stationarity of the data and the Johansen cointegration test was utilized to determine the presence of a long-run relationship. Dynamic Ordinary Least Squares technique was used to test the effect of external debt on external reserves in Nigeria. The findings showed that multilateral debt has a significant effect on external reserves in Nigeria. However, bilateral debt has an insignificant effect on external reserves in Nigeria. The study recommends that the Nigerian government should strengthen its capacity in debt negotiation and contracting. This involves conducting comprehensive assessments of loan terms, interest rates, grace periods, and repayment schedules before accepting multilateral debt. Furthermore, the Ministry of Finance through the Debt Management Office should continue to improve its debt monitoring and evaluation mechanisms for bilateral loans. This involves establishing transparent processes to track the utilization and impact of borrowed funds.

Features of Anti-crisis Financial Support for Regions in Russia

The article examines the Russian central government’s choice of anti-crisis support measures for its regions. Federal transfers and budget loans, which have been the two most common instruments for providing fiscal assistance to support regions in crisis, are studied in detail. Financial assistance to the regions enables regional budgets to remain balanced, but it may also weaken fiscal incentives. Econometric analysis is applied to assess the effects of supporting regional budgets when their tax and non-tax revenues decreased during the period from 2006 to 2020. Special attention is paid to identifying the differences in support for the regions during the crises of 2008–2009, 2014–2015 and 2020, and the differences in the policies pursued during those crisis periods are subjected to various tests. The results of evaluating the econometric models using data from 2006 to 2020 indicated that there was no significant weakening of fiscal incentives outside the crisis periods. Support increased by no more than 20 kopecks per 1 ruble when regional tax and non-tax revenues decreased outside the crisis periods, although that result is not replicable across changes in the regions sampled and in specifications. The federal support policy for the regions in 2009 and 2020, in contrast to 2015, was mostly a response to the amount of the shortfalls in regional budget revenues. The distribution of transfers in 2020 was largely aimed at compensating for reductions in budget revenues. The paper also highlights the difference in the federal policy depending on a given region’s budget capacity: support for wealthy regions was aimed at compensating for shortfalls in income, while support for low-income regions did not correlate with reduced income. The results of this study are correlated with earlier estimates based on Russian data and extend them with an analysis of the 2020 crisis

Changes in Inpatient Hospital Services During the COVID-19 Pandemic in Thailand: A Descriptive and Costing Study

Background: The COVID-19 pandemic forced policy makers to find solutions to protect hospitals from revenue shortfalls and provide high quality of care for COVID-19 and other patients. In Thailand, hospitals have adjusted the hospital services arrangement to new normal hospital services to prevent the spread of coronavirus while maintaining essential hospital services for non-COVID-19 patients. Objective: To describe the COVID-19 patient flow and estimate the costs of the new normal hospital services implemented in six public hospitals across Thailand. Materials and Methods: The authors conducted a cross-sectional study to describe the COVID-19 patient flow in each participating hospital between January and November 2020, representing the first wave of the COVID-19 outbreak in Thailand. Data were collected from hospital staff interviews, hospital historical budget review, and hospital databases. The hospital costs of the new normal hospital services were estimated using an activity-based costing approach from the provider’s perspective. Results: The COVID-19 patients could access the new normal hospital services through three channels including 1) walk-in, 2) transfer from other hospitals, and 3) active surveillance from communities. The ratio of costs of the new normal hospital services during the COVID-19 outbreak and the normal situation were one to two times and one to five times for patients with mild infection admitted to secondary and tertiary care hospitals, respectively, but one to three times for those with moderate-to-severe infection admitted to tertiary care hospitals. Conclusion: The COVID-19 pandemic imposed additional costs to Thai hospitals. The magnitude of the incremental costs depended on COVID-19 severity and hospital level. Keywords: Cost; COVID-19; Hospital services; New normal; Thailand